Applied Materials to Pay $252M Over Illegal Chip Equipment Exports to China

Applied Materials has agreed to pay a $252 million settlement to resolve allegations of violating U.S. export controls. The U.S. Department of Commerce accused the company of shipping sensitive chip-making equipment to China's SMIC without the required authorization. This penalty involves 56 separate violations related to equipment valued at approximately $126 million. It represents the second-largest fine ever imposed by the Bureau of Industry and Security, reflecting the severity of the breach. The settlement underscores the intensifying regulatory scrutiny and geopolitical risks facing the semiconductor industry. Investors are closely monitoring how these trade restrictions will impact future revenue from the Chinese market.