Applied Materials Pays $252M to Settle China Chip Export Charges
Chipmaking equipment giant settles with Commerce Department over alleged illegal shipments to China's SMIC.
Applied Materials just wrote a very expensive check. The semiconductor equipment maker agreed to a $252 million settlement with the U.S. Commerce Department over allegations it illegally shipped chipmaking gear to SMIC, China's largest chip foundry.
The settlement resolves claims that Applied Materials violated export controls — a particularly sensitive area as the U.S. continues tightening restrictions on advanced chip technology flowing to China.
Applied Materials is one of the world's largest suppliers of equipment used to manufacture semiconductors. SMIC, meanwhile, sits at the center of China's push for chip independence and has been on the U.S. Entity List since 2020.
The $252 million penalty sends a clear message: export control violations carry serious financial consequences, even for industry giants.