Applied Materials fined $252.5 million for exporting chip equipment to China

LootboxPhobia · 2026-02-12T02:53:46+00:00

The U.S. Department of Commerce has fined Applied Materials $252.5 million for violating export regulations to China, involving the illegal export of advanced chip equipment to SMIC. The fine is the second-highest in BIS history, reflecting the U.S. strict restrictions on technology exports to China. Applied Materials has expressed satisfaction with the resolution of this matter.

LootboxPhobia

2026-02-12 02:53:46

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Investing.com - The U.S. Department of Commerce fined Applied Materials Inc (NASDAQ:AMAT) $252.5 million on Wednesday for allegedly illegally exporting advanced chip manufacturing equipment to China.

The Bureau of Industry and Security (BIS) accused Applied Materials of violating 56 provisions of U.S. export control guidelines for China.

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The company is accused of exporting or attempting to export equipment worth at least $126 million to China’s largest chip manufacturer, Semiconductor Manufacturing International Corp (HK:0981), between 2020 and 2023.

In a separate statement, Applied Materials said it is satisfied with the resolution of the matter.

The company has warned in recent years that strict U.S. export controls on China would impact its sales. This occurred after both the Biden and Trump administrations imposed strict restrictions on chip exports to China, partly to prevent Beijing from developing artificial intelligence technology.

Wednesday’s penalty is the second-highest fine imposed by BIS for export violations, only behind the $300 million fine in 2023 against Seagate Technology PLC (NASDAQ:STX) for selling hard drives to Huawei in China.

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