Applied Materials Falls Most in Almost a Year on Reported Probe
- News overshadowed a generally upbeat quarterly earnings report
- Justice Department is investigating company, Reuters says
The Applied Materials headquarters in Santa Clara, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Applied Materials Inc., the largest US maker of chipmaking machinery, plunged by the most in almost a year on Friday following a report that it faces a US criminal investigation for allegedly violating export restrictions to China.
The company is being probed by the Justice Department over dealings with China’s biggest chipmaker, Semiconductor Manufacturing International Corp., according to Reuters. The department is looking at whether Applied Materials sold hundreds of millions of dollars of equipment without the proper licenses, the news outlet reported, citing unidentified people familiar with the situation.