US extends probe into chip-gear maker Applied Materials, possibly over shipments to China’s SMIC

Applied Materials disclosed on Thursday that it received another subpoena from the US Department of Commerce in May, as regulators request more information on shipments to China.

The largest US semiconductor equipment maker received a US Securities and Exchange Commission subpoena and two from the US Attorney’s Office for the District of Massachusetts in February. In November 2023 the Commerce Department sent a subpoena “requesting information relating to certain China customer shipments”.
Applied Materials is under US criminal investigation for potentially evading export restrictions on China’s top chip maker, Semiconductor Manufacturing International Corporation (SMIC), three people familiar with the matter said in a Reuters report in November.
The SMIC headquarters in Shanghai, China. Photo: Bloomberg

Applied Materials, which supplies chip-making tools to Samsung Electronics and Taiwan Semiconductor Manufacturing Company (TSMC), reported that 43 per cent of its total revenue came from China in the second quarter.