“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. Like 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.
See also: Nvidia says new limits on China exports to cost US$5.5 billion
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.
