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Applied Materials halts work for red-flagged Chinese chip maker
US chip tool leader pulls staff from San'an Optoelectronics following government listing
TAIPEI – California-based Applied Materials, the world's top chip and display equipment maker, has ordered staff to halt all deliveries and servicing for China's biggest LED chip maker, who was named on a red flag list issued by the U.S. government last week.
Xiamen San'an Optoelectronics is one of at least three Chinese customers of Applied Materials who were identified on the U.S. government's "unverified list," people with knowledge of the situation told Nikkei Asian Review. While the list does not embargo dealings with these entities, it requires American companies to treat them with caution. U.S. suppliers can no longer use existing licences to sell them products or service installed equipment, but have to reapply for new ones. San'an Optoelectronics is also the world's biggest LED chipmaker by revenue and listed in Shanghai.
Xi'an Jiaotong University, one of China's top 15 colleges, and a unit of Chinese Academy of Sciences, the country's top research agency, are also Applied Materials customers named on the unverified list, which was published on April 11, a supply chain source familiar with the move said. Some 37 Chinese companies and research institutions were named on the list, as well as seven organizations in Hong Kong, four in the United Arab Emirates, two in Malaysia and one in Indonesia.
The U.S. government's move marks another setback to the companies and research institutions who are crucial to China's ambitions to become a global tech superpower.
Applied Materials supplies almost all the world's leading semiconductor and panel manufacturers. Market leaders such as Intel, Samsung Electronics, Taiwan Semiconductor Manufacturing Co, and China's national display champion BOE Technology Group could not make products without the company's tool and services.
As an industry leader in advanced tools for the critical semiconductor industry, Applied Materials' decision to immediately stop all business with those on the list could influence other U.S. vendors, as well as those outside the country, industry sources told Nikkei Asian Review.
On Friday, Applied Materials sent a notice to all staff involved with the named companies that they should "immediately stop all pending and future equipment delivery, and cease all service activities at their sites," according to the notice obtained by the Nikkei Asian Review. The U.S. chip tool giant also demanded that staff, contractors and other personnel immediately withdraw from the sites of those companies, the notice said.
The notice warned that failure to follow this compliance could lead to significant violations of U.S. trade law.
https://asia.nikkei.com/Business/China-tech/Applied-Materials-halts-work-for-red-flagged-Chinese-chip-maker
digitz confirm
appear's so anon. Exactly what is mentioned in that article. All the juicy stuff in Asia comes out during our anoon/night on weekend's
there not going to come out and give it all away at once. If that is the case, as you state, then it is big news. perhaps state your case as it was not nommed. Up to you fren