Applied Materials is under criminal investigation by the US Department of Justice for potentially evading export restrictions on shipments to China's top chipmaker SMIC. The semiconductor chipmaker allegedly sent Hundreds of millions of dollars worth of equipment to SMIC via its South Korean subsidiary without obtaining the necessary export licenses from the US government. The US has restricted exports of advanced semiconductors and chipmaking equipment to China over national security concerns about enabling China's military modernization. SMIC was added to the US Entity List in 2020 due to its apparent ties to the Chinese military.
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00:00 It's Benzinga and here's what's on the block.
00:02 Applied Materials is under criminal investigation by the U.S. Department of Justice for potentially
00:07 evading export restrictions on shipments to China's top chipmaker SMIC.
00:12 The semiconductor chipmaker allegedly sent hundreds of millions of dollars worth of equipment
00:17 to SMIC via its South Korean subsidiary without obtaining the necessary export licenses from
00:23 the U.S. government.
00:24 The U.S. has restricted exports of advanced semiconductors and chipmaking equipment to
00:28 China over national security concerns about enabling China's military modernization.
00:33 SMIC was added to the U.S. entity list in 2020 due to its apparent ties to the Chinese
00:39 military.
00:40 For all things money, visit Benzinga.com.
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