Applied Materials receives Justice Department subpoena, deepening recent investigation

Applied Materials receives Justice Department subpoena, deepening recent investigation

(Bloomberg) — Applied Materials Inc. said the U.S. Justice Department has requested information about its applications for federal grants, adding another layer to the regulatory investigation into the company’s activities.

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The chipmaker received a subpoena from the Justice Department and is fully cooperating with the government, according to a regulatory notice last week. The request related to “certain federal grant applications and information submitted to the federal government,” the company said.

Applied Materials had applied for government support for a planned research center under the US Chips and Science Act, a program to promote domestic chip manufacturing facilities. The company’s application for funding was ultimately rejected, and the group was denied funding for the $4 billion research facility planned in Sunnyvale, California.

Applied Materials’ business with China has come under government scrutiny before. Earlier this year, the company disclosed inquiries from the Securities and Exchange Commission and the U.S. Attorney’s Office for the District of Massachusetts into its product shipments to China. These came in addition to other inquiries dating back to 2022.

Amid a conflict with its geopolitical rival, the US is restricting China’s access to cutting-edge chip technology. China is the largest market for semiconductors and is trying to produce more advanced chips on its territory – a move the US sees as a potential threat to the country’s national security.

Applied Materials, based in Santa Clara, California, did not immediately respond to a request for comment.

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