Applied Materials stops selling to firms on Chinese 'red-flag' list

April 15, 2019 //By Peter Clarke
Applied Materials stops selling to firms on Chinese 'red-flag' list
Leading semiconductor equipment supplier Applied Materials Inc. has stopped business with companies on a list of "unverified" Chinese companies and research institutes produced by the United States Department of Commerce.

The department added 37 companies and research institutes to a list of "unverified" Chinese entities with effect from April 11 and Applied has halted delivery and services to any of its customers on that list, according to reports.

The Commerce department requires that suppliers apply for a new license to be permitted to sell to these 'red-list' bodies, according to a Reuters report.

San'an Optoelectronics, the largest LED manufacturer in China, was added to the list along with two other Applied customers; Xian Jiaotong University and the Chinese Academy of Sciences.

But rather than seek a permission to supply and service these companies Applied has decided to end all business activities with them.

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