Applied Materials, Inc. is currently under criminal investigation by the U.S. Justice Department for potentially evading export restrictions on China’s top chipmaker, SMIC. This investigation centers on allegations of non-compliance with federal regulations concerning semiconductor technology exports.
The news of the investigation led to a significant decline in Applied Materials' stock price, falling approximately 5% during intraday trading on November 17, 2023. The legal scrutiny introduces considerable uncertainty regarding potential penalties or operational restrictions for the company.
This development highlights the increasing geopolitical tensions and the strict enforcement of export controls in the semiconductor industry. The outcome of this investigation could have material implications for Applied Materials' business operations and market access in China.
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