The U.S. Department of Commerce reaches $252 million settlement with Applied Materials in connection with illegal export of chip equipment to China

On February 12, the U.S. Department of Commerce announced a $252 million settlement with global semiconductor equipment giant Applied Materials in an export control case. Applied Materials was accused of shipping approximately $126 million worth of ion implanters to its South Korean subsidiary AMK for assembly without a license, before transferring them to customers in China, allegedly violating U.S. export controls on China.

Applied Materials expressed satisfaction with the settlement. The U.S. Department of Justice and the Securities and Exchange Commission have informed the company that they are terminating the investigation and will not take further action. This case reflects the complex compliance challenges faced by multinational corporations against the backdrop of increasingly stringent U.S. export controls on high-tech products to China.