Exclusive-Applied Materials under US criminal probe for shipments to China's SMIC-sources
By Karen Freifeld
(Reuters) — Semiconductor equipment maker Applied Materials (NASDAQ:AMAT) is under U.S. criminal investigation for potentially evading export restrictions on China's top chipmaker SMIC, according to three people familiar with the matter.
The largest U.S. semiconductor equipment maker is being probed by the Justice Department for sending hundreds of millions of dollars of equipment to SMIC without export licenses, one source, who requested anonymity because of the sensitivity of the investigation, said. Reuters is reporting details of the probe for the first time.
The U.S. has restricted shipments of advanced chips and chipmaking equipment to China for national security, and the Justice and Commerce departments launched a task force earlier this year to investigate and prosecute criminal violations of export controls. The rules are aimed at stemming the flow of U.S. technology that could be used to bolster China's military and intelligence capabilities.
Santa Clara, California-based Applied Materials said Thursday it first disclosed in October 2022 that it had received a subpoena from the U.S. Attorney's Office in Massachusetts for information on certain China customer shipments. «The company is cooperating with the government and remains committed to compliance and global laws, including export controls and trade regulations,» it said in a statement.
The U.S. Attorney's office in Boston said: «We do not confirm or deny investigations.»
Prosecutors in the office's National Security Unit are handling the ongoing probe, two sources said.
Reuters could not determine whether Applied Materials violated the law, and it isn't clear whether the investigation will result in charges.
The company
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