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Applied Materials Inc. (NASDAQ: AMAT) revealed that the U.S. Department of Justice (DOJ) has requested information regarding its federal grant applications, escalating the government’s investigation into the company’s operations.

In a regulatory filing last week, the chip equipment manufacturer disclosed that it received a subpoena from the DOJ and is fully cooperating. The request reportedly concerns certain federal award applications and related information submitted to the government.

Applied Materials had sought government support for its planned research center under the U.S. CHIPS and Science Act, intended to enhance local chip manufacturing capabilities. However, according to previous reports by IC&PCB Union, the company’s application was denied, leaving the $4 billion research center in Sunnyvale, California, underfunded.

Despite tightening U.S. export controls on the semiconductor sector, major chip equipment makers, including Applied Materials, are becoming increasingly reliant on the Chinese market. Between February and April, China accounted for 43% of Applied Materials' total sales, a 22-point increase year-over-year.

Earlier this year, in February, Applied Materials had already received subpoenas from the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office for the District of Massachusetts, prior to the DOJ subpoena. The company was reportedly under investigation for allegedly supplying equipment to SMIC, China’s leading chipmaker, through South Korea without proper export licenses.

Applied Materials has not yet responded to requests for comment on the matter.

About Applied Materials

Applied Materials, Inc. is an American corporation founded in 1967 and went public in 1972. It supplies equipment, services, and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products. The company also provides equipment for producing coatings for flexible electronics, packaging, and other applications. Headquartered in Santa Clara, California, Applied Materials is the second-largest supplier of semiconductor equipment in the world by revenue, behind ASML of the Netherlands.

Editor：Lulu

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