Applied Materials, Inc. has reached a settlement with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) to resolve an inquiry regarding certain customer shipments to China between November 2020 and July 2022. The company will pay a one-time penalty of $252.5 million and has agreed to conduct internal audits and maintain compliance training, while the U.S. Department of Justice and SEC have closed their related investigations without action.
Key takeaways
Applied Materials entered into a settlement agreement with the U.S. Commerce Department's Bureau of Industry and Security (BIS) on February 11, 2026.
The settlement resolves BIS's allegations that certain customer shipments to China between November 2020 and July 2022 did not comply with U.S. Export Administration Regulations.
Applied Materials agreed to pay $252.5 million to BIS in a one-time payment as part of the settlement.
The company agreed to conduct internal audits of its export controls compliance program and maintain export compliance training and reporting mechanisms.
The U.S. Department of Justice and the U.S. Securities and Exchange Commission have closed their respective inquiries and taken no enforcement action.
The settlement concludes the U.S. government's review of the matter.