After the market closed on November 16, 2023, Reuters reported that “Semiconductor equipment maker Applied Materials is under U.S. criminal investigation for potentially evading export restrictions on China's top chipmaker SMIC, according to three people familiar with the matter.” According to Reuters, the Company “is being probed by the Justice Department for sending equipment to SMIC via South Korea without export licenses, the sources said.”
Shares of Applied Materials stock dropped more than 7% in afterhours trading on November 16, 2023.
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