Exclusive Sources Reveal: Applied Materials Under US Criminal Probe for Shipments to China’s SMIC

Share This Post

Tech News Summary:

  • Applied Materials is under criminal investigation in the United States for potentially evading restrictions on exports to China’s SMIC, causing its shares to fall by 7.3%.
  • The company is being investigated for shipping equipment to SMIC through South Korea without export licenses, despite US restrictions on shipments of advanced chips and chip-making equipment to China for national security reasons.
  • The investigation highlights the challenges faced by companies operating within highly regulated industries and sheds light on geopolitical tensions between major players in the global tech supply chain.

According to exclusive sources, Applied Materials, a major supplier for semiconductor manufacturing equipment, is facing a criminal probe in the United States over its shipments to China’s Semiconductor Manufacturing International Corporation (SMIC).

The probe, which is being conducted by the U.S. Department of Justice, is reportedly looking into whether Applied Materials violated U.S. export control laws by shipping equipment to SMIC without the required licenses.

SMIC has been on the U.S. government’s Entity List since December 2020, which restricts American companies from exporting certain goods to the Chinese firm without a license. The U.S. government cited national security concerns and alleged ties to the Chinese military as reasons for placing SMIC on the Entity List.

Applied Materials is one of the world’s leading suppliers of equipment used in the production of semiconductors, and any potential legal action against the company could have significant repercussions for the global semiconductor industry.

Both Applied Materials and SMIC have declined to comment on the matter, and the U.S. Department of Justice has not officially confirmed the existence of the probe.

The ongoing investigation comes in the midst of heightened tensions between the U.S. and China, particularly in the tech sector. The U.S. government has been increasingly scrutinizing Chinese tech companies and their ties to the Chinese military, and this probe could further exacerbate the strained relationship between the two countries.

This development also highlights the importance of export control compliance for companies operating in the high-tech sector, as violations can result in severe legal and financial consequences.

As the situation unfolds, industry observers will be closely monitoring the potential impact of the probe on Applied Materials, SMIC, and the broader semiconductor industry.

Read More:

Partnership Between Mitsubishi Electric and Nozomi Networks Strengthens Operational Technology Security Business

Mitsubishi Electric and Nozomi Networks Partnership Mitsubishi Electric and Nozomi...

Solidion Technology Inc. Completes $3.85 Million Private Placement Transaction

**Summary:** 1. Solidion TechnologyInc. has announced a private placement deal...

Analyzing the Effects of the EU’s AI Act on Tech Companies in the UK

Breaking Down the Impact of the EU’s AI Act...

Tech in Agriculture: Roundtable Discusses Innovations on the Ranch

Summary of Tech on the Ranch Roundtable Discussion: ...

Are SMEs Prioritizing Tech Investments Over Security Measures?

SMEs Dive Into Tech Investments, But Are...

Spotify Introduces Music Videos for Premium Members in Chosen Markets

3 Summaries of Spotify Unveils Music Videos for Premium...

Shearwater to Monitor Production at Equinor’s Two Oil Platforms

Shearwater GeoServices secures 4D monitoring projects from Equinor for...

Regaining Europe’s Competitive Edge in Innovation: Addressing the Innovation Lag

Europe’s Innovation Lag: How Can We Regain Our Competitive...

Related Posts

Government Warns of AI-Generated Content: Learn More about the Issue

Government issued an advisory on AI-generated content. All AI-generated content...

Africa Faces Internet Crisis: Extensive Outage Expected to Last for Months, Hardest-Hit Nations Identified

Africa’s Internet Crisis: Massive Outage Could Last Months, These...

FTC Investigates Reddit for AI Content Licensing Practices

FTC is investigating Reddit's plans...

Journalists Criticize AI Hype in Media

Summary Journalists are contributing to the hype and...