Applied Materials is under criminal investigation in the US for breaching export restrictions on selling chip manufacturing equipment to SMIC.

Applied  shipped equipment to its Korean subsidiary from where it was sent to SMIC, says Reuters.

SMIC was put on the US Department if Commerce’s Entity List in December 2020 because of alleged ties to the Chinese military..

Applied told Bloomberg: “The company is cooperating with the government and remains committed to compliance with global laws, including export controls and trade regulations.”

 

The National Security Unit of the US Attorney’s office in Boston is reported to be in charge of the investigation  into applied.