Applied Materials Gets DOJ Subpoena, Adding to Recent Scrutiny
(Bloomberg) -- Applied Materials Inc. said the US Department of Justice has requested information on its applications for federal grants, adding another layer to government investigations into its operations.
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The maker of chip equipment received a subpoena from the DOJ and is cooperating fully with the government, according to a regulatory filing last week. The request pertained to “certain federal award applications and information submitted to the federal government,” the company said.
Applied Materials had requested government support for a planned research center under the US Chips and Science Act, a program adopted to support domestic chip facilities. The company was ultimately denied a request for funding, dealing a below to the $4 billion research site, which has been planned for Sunnyvale, California.
Applied Materials’ dealings with China had already come under government scrutiny. Earlier this year, it disclosed requests from the Securities and Exchange Commission and the US Attorney’s Office for the District of Massachusetts on its product shipments to China. Those came on top of other inquiries dating back to 2022.
The US has been clamping down on China’s access to cutting-edge chip technology as part of a clash with its geopolitical rival. China is the largest market for semiconductors and is attempting to build more advanced chips on its soil — a move the US sees as a potential threat to American national security.
Applied Materials, based in Santa Clara, California, didn’t immediately respond to a request for comment.
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