Applied Materials falls after report of US criminal probe
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Summary
Applied Materials Inc, the largest US maker of chipmaking machinery, is facing a US criminal investigation for allegedly violating export restrictions to China. The US Department of Justice is scrutinizing the company's dealings with China's Semiconductor Manufacturing International Corp (SMIC). The investigation is focused on whether Applied Materials sold equipment worth hundreds of millions of dollars to China without the necessary licenses. Applied Materials had previously disclosed a federal review of its China deliveries. Despite generally positive quarterly results that exceeded analyst expectations, the news of the investigation caused Applied Materials' shares to fall by as much as 7 percent in after-hours trading. The company and its peers are operating under increasingly strict rules imposed by Washington on exports of chip technology to China. These rules are aimed at protecting national security and require companies to seek licenses for certain transactions with Chinese entities.
Taipei Times
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