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Applied Materials gets another subpoena on China customer shipments
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Applied Materials gets another subpoena on China customer shipments
May 23, 2024 2:39 PM

May 23 (Reuters) - Applied Materials ( AMAT ) disclosed

on Thursday that it received another subpoena from the U.S.

Department of Commerce in May, as regulators request more

information on shipments to China.

The largest U.S. semiconductor equipment maker received an

SEC subpoena and two from the U.S. Attorney's Office for the

District of Massachusetts. In November 2023 the Commerce

Department sent a subpoena "requesting information relating to

certain China customer shipments."

Applied Materials ( AMAT ) is under U.S. criminal investigation for

potentially evading export restrictions on China's top

chipmaker, Semiconductor Manufacturing International Corporation

(SMIC), three people familiar with the matter said in a Reuters

report in November.

Applied Materials ( AMAT ), which supplies chipmaking tools to

Samsung Electronics ( SSNLF ) and Taiwan Semiconductor

Manufacturing Co ( TSM ), reported that 43% of its total

revenue came from China in the second quarter.

Applied Materials ( AMAT ) is being probed by the Justice Department

for sending equipment to SMIC via South Korea without export

licenses, sources told Reuters in November. Hundreds of millions

of dollars of equipment is involved, one of the people said at

the time.

The company repeatedly shipped equipment from its plant

in Gloucester, Massachusetts, to a subsidiary in South Korea and

then to SMIC, the people familiar with the probe said in

November.

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