US authorities investigate Applied Materials for exporting chip equipment to China

US authorities investigate Applied Materials for exporting chip equipment to China

Applied Materials, the largest US maker of chipmaking machinery,⁣ is facing‌ investigations‌ in the ‌US for violating export restrictions to ​China.

In a filing⁢ to the US Securities ​and Exchange ​Commission, the company ​said it was under investigation ‍by the US Attorney’s‍ Office for‌ the District​ of Massachusetts ⁤for certain shipments to China.

“In August 2022, ⁣we received ​a subpoena⁢ from the⁢ US Attorney’s Office for the ⁢District of Massachusetts requesting⁢ information relating to​ certain China customer ⁢shipments. We are cooperating​ fully with the⁣ government,” the company said‍ in the filing.

“This matter is subject ⁣to uncertainties, and⁢ we cannot predict‌ the outcome, nor reasonably estimate a range⁤ of loss⁣ or penalties, ⁤if any, relating to ​this matter,” it added.

The probe, according to a​ Reuters report, is a result of the company allegedly shipping equipment to China’s largest chipmaker Semiconductor Manufacturing ‍International Corporation (SMIC) via South Korea without proper ⁣licenses.

The US government contends that the shipments were‌ sent to SMIC from Applied Materials’ factory⁣ in Gloucester,‌ England after SMIC was added to a restricted entity list‍ in 2020.

The US ‍first imposed restrictions on exports of chips to China in⁣ 2015, extending them in 2021 and twice in 2022. The most​ recent restrictions were introduced in October.

The new restrictions were added to stop the flow of advanced⁤ chips⁤ to Chinese data centers‍ that house supercomputers and infrastructure that support AI development.

Included in the new rules is a worldwide⁣ licensing requirement for ⁤any ​company that is headquartered‍ in China, Macau, and any destination‍ subject to the US⁣ arms embargo, or⁤ whose ultimate parent ‌company is headquartered in those countries, ⁤according to a statement issued by⁣ the ‌US Bureau ‌of Industry and Security (BIS), which operates ‍under the⁤ Commerce Department.

Chipmakers and other companies involved​ in ‌chip manufacturing ‌have​ been trying to find new ways to​ supply ​chips to China without breaking any laws.

Last week, reports emerged that⁤ Nvidia‍ was working on producing⁢ three new graphics processing units⁣ (GPUs) for sale in China.

Despite the new restrictions, Chinese companies continue ⁤to access restricted chips ⁤through illicit trade.

A recent Reuters report highlighted how advanced Nvidia‌ GPUs such as the A100 can still be procured ⁣in China,‌ albeit ⁤at a higher price.

2023-11-20 18:41:03
Source from www.computerworld.com rnrn

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