Semiconductor equipment maker Applied Materials AMAT-Q is under U.S. criminal investigation for potentially evading export restrictions on China’s top chip maker SMIC, according to three people familiar with the matter.

The largest U.S. semiconductor equipment maker is being probed by the Justice Department for sending equipment to SMIC via South Korea without export licences, the sources said.

Applied Materials under U.S. criminal probe for shipments to Chinese chip maker SMIC: sources comes via ChinaTechNews.com.