[Applied Materials (Provided by Applied Materials Korea = Yonhap News)]
‘Amid strengthening export controls against China by the U.S. Department of Commerce, it has been confirmed that Applied Materials, the largest semiconductor equipment company in the U.S., is expanding its investigation into the export of equipment to Chinese companies.’
According to Bloomberg news on the 26th local time, Applied Materials disclosed last week that it received a summons from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce earlier this month. This is the second time following November last year.
Applied Materials stated through public disclosure, “We are fully cooperating with the government on these matters,” and “Due to the uncertainties surrounding these matters, we cannot reasonably estimate potential losses or penalties that may arise.”
The U.S. government has imposed restrictions on the types of semiconductor equipment exported to China to prevent China from acquiring advanced technologies that pose a threat to national security.
Applied Materials has been under investigation by the Massachusetts Attorney General’s Office since February for its trade relations with Chinese companies after the export controls against China began in 2022. In addition, an investigation by the U.S. Securities and Exchange Commission (SEC) is also ongoing.
Despite a decrease in sales since the start of U.S. export controls on China, China still represents about 25% of the company’s revenue.
Chinese companies are investing significant funds not only in importing advanced equipment but also in importing essential equipment such as obsolete equipment used in electric vehicles and factory facilities.