Phones Canada is closely monitoring the latest developments in the telecommunications industry, including the recent widening investigation against Applied Materials by the U.S. Commerce Department. Here’s a breakdown of the key points:

– The U.S. Commerce Department is investigating Applied Materials, a leading company in semiconductor chip fabrication equipment and software.
– Applied Materials received a subpoena from the Commerce Department in May, following previous subpoenas from the SEC and U.S. Attorney’s Office for the District of Massachusetts.
– The investigation focuses on allegations that Applied Materials circumvented U.S. export restrictions to supply cutting-edge chip manufacturing equipment to China’s largest foundry, SMIC.
– Despite supplying equipment to other major foundries like TSMC and Samsung Foundry, 43% of Applied Materials’ revenue came from China in Q2.
– Last year, Huawei introduced the Mate 60 line powered by a new 7nm Kirin 9000s 5G chip, marking a significant development in the industry.

In response to changing export rules, Huawei had to use Snapdragon chips without 5G capability for subsequent product lines after facing restrictions on receiving cutting-edge silicon. Qualcomm’s export licenses for supplying chips to Huawei have also been revoked without plans for reinstatement.

Additionally, there have been reports of investigations into Applied Materials’ shipments to South Korea without proper export licenses, with concerns that these shipments ultimately reached SMIC in China.

Phones Canada will continue to provide updates on this evolving situation as more information becomes available. Stay tuned for further insights into the telecommunications sector and its impact on industry players like Applied Materials.