Applied Materials to pay $252.5M in Department of Commerce settlement agreement

Applied Materials (AMAT) announced that it has reached a settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security, or BIS. The settlement resolves BIS’s allegations that certain customer shipments to China between Nov. 2020 and July 2022 did not comply with the U.S. Export Administration Regulations, based on the company’s misunderstanding of the applicability of those regulations. Under the terms of the settlement, Applied has agreed to pay $252.5M to the Department of Commerce. In addition, the U.S. Department of Justice and the SEC have notified Applied that they have closed their related investigations without action. The company said, “Applied Materials is pleased that the Department of Justice and SEC have closed their respective reviews, and that a civil settlement has been reached with the Department of Commerce, concluding the U.S. government’s review. Applied believes that resolving this matter is in the best interest of the company, its customers, employees and shareholders. Integrity and compliance are core to how Applied operates, and the company remains fully committed to maintaining strong export-control and trade-compliance practices across its global operations. With this matter closed, Applied is focused on executing our technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation.”