(Bloomberg) — U.S. government agencies issue new requests for information about Applied Materials Inc.’s shipments to Chinese customers, as Washington seeks to cut off sales of advanced chip-making equipment to geopolitical rivals. As a result of this, a sensitive topic has once again come to the fore.
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As recently as February, Applied, the largest supplier of semiconductor manufacturing equipment in the United States, disclosed “multiple subpoenas” from agencies including the Securities and Exchange Commission and the U.S. Attorney’s Office for the District of Massachusetts. This comes in addition to requests from the Commerce Department and other agencies dating back to 2022, when the Biden administration escalated its sanctions campaign to stop the flow of advanced chips to China.
Applied did not provide details about the recent subpoenas, but it is one of several U.S. companies at the center of efforts to halt China’s technological rise. The company provides much of the equipment that is central to the highly sensitive task of making semiconductors, and the United States has enlisted its help, as well as its own, in the campaign.
But last year, Reuters reported that the Justice Department had opened an investigation into its dealings with Semiconductor Manufacturing International Corporation. China’s largest chipmaker has successfully produced advanced processors for Huawei in 2023 that were previously thought to be beyond China’s reach. , spurring debate in Washington about the effectiveness of trade sanctions.
“We are cooperating fully with the government on these matters,” Applied said in a filing Tuesday. “These matters involve uncertainties, and we cannot predict the outcome or reasonably estimate the extent of losses or penalties, if any, in connection with these matters. .”
Despite sanctions, gear makers like Applied are making more money from China than ever before, given China’s appetite for electronics and efforts to stockpile ahead of stricter regulations. .
Read more: Chip manufacturing gear companies get more revenue than ever from China
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