Air Freight News

US extends investigation into chip-gear maker Applied Materials

The US Department of Commerce is continuing an investigation into Applied Materials Inc.’s shipments to Chinese customers, part of a broader effort to ensure that increasingly strict trade restrictions against the Asian nation are effective. 

The company said in a filing this week that it had received subpoenas in May from the Commerce Department’s Bureau of Industry and Security. That followed earlier subpoenas from the agency in November of last year.

“We are cooperating fully with the government in these matters,” Applied Materials said in the filing. “These matters are subject to uncertainties, and we cannot predict the outcome, nor reasonably estimate a range of loss or penalties, if any, relating to these matters.”

The US government has placed restrictions on the types of chipmaking equipment that can be shipped to Chinese customers, aiming to prevent the country from acquiring cutting-edge capabilities that Washington has said would be a threat to national security.

Applied Materials, based in Santa Clara, California, also has received requests from the US Attorney’s Office for the District of Massachusetts dating back to 2022 and another inquiry from the Securities and Exchange Commission earlier this year.

The company is the biggest US maker of chip-manufacturing gear. Likes its peers, it lost sales when the US export rules were initially announced. Nonetheless, China remains an important market, accounting for about a quarter of Applied Materials’ revenue.

Chinese businesses, cut off from advanced production machinery, have spent heavily on older types of gear — equipment that’s used to make chips that are simpler but still vital to electronics. Such components are used in electric vehicles, factory equipment and other areas.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

December CNBC/NRF retail monitor results show strong growth boosted by final Thanksgiving weekend days

Retail sales jumped strongly in December, boosted in part by two busy holiday shopping days during Thanksgiving weekend falling in the final month of the year, according to the CNBC/NRF…

View Article
NAW presents Dirk Van Dongen Lifetime Achievement Award to Bergman, CEO of Henry Schein, Inc.

At the 2025 NAW Executive Summit Gala on January 28 in Washington, D.C.

View Article
https://www.ajot.com/images/uploads/article/Chemicals_Ind_Image.png
St. Louis region’s chemical industry welcomes new investment
View Article
https://www.ajot.com/images/uploads/article/DSC_WOODLAND_1083.png
Navigating compliance: Adapting to changing Customs regulations in global supply chains
View Article
https://www.ajot.com/images/uploads/article/December-2024-Transportation-Employment.png
December 2024 U.S. Transportation Sector Unemployment (4.3%) Was the Same As the December 2023 Level (4.3%) And Above the Pre-Pandemic December 2019 Level (2.8%)
View Article
DP World appoints Jason Haith as Vice President of Freight Forwarding for U.S. and Mexico

DP World, a global leader in logistics and supply chain solutions, has announced the appointment of Jason Haith as Vice President, Commercial Freight Forwarding – U.S. and Mexico, effective immediately.…

View Article