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China tech

Applied Materials halts work for red-flagged Chinese chip maker

US chip tool leader pulls staff from San'an Optoelectronics following government listing

Applied Materials of the U.S. is a key supplier to China's Xiamen San'an Optoelectronics. (Photo provided by Applied Materials)

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 recently issued by the U.S. government.

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.

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