Applied Faces Criminal Investigation, Reports Suggest

Applied Materials, a leading chip manufacturing equipment company, is currently facing a criminal investigation in the United States. The investigation revolves around allegations of breaching export restrictions by selling equipment to Semiconductor Manufacturing International Corporation (SMIC).

According to Reuters, Applied Materials shipped the equipment to its Korean subsidiary, which then forwarded it to SMIC. This action has raised concerns as SMIC was placed on the US Department of Commerce's Entity List in December 2020 due to alleged ties with the Chinese military.

When approached by Bloomberg, Applied Materials stated, "The company is cooperating with the government and remains committed to compliance with global laws, including export controls and trade regulations." This indicates their willingness to work with authorities and adhere to legal obligations.

The investigation into Applied Materials is being led by the National Security Unit of the US Attorney's office in Boston. The unit is responsible for examining potential threats to national security and ensuring compliance with relevant laws and regulations.

As the investigation unfolds, it remains to be seen what consequences Applied Materials may face if found guilty of breaching export restrictions. The outcome of this case could have significant implications for the company's reputation and future business operations.