Applied Materials, Inc. has announced that it has reached a settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The settlement resolves BIS’s allegations that certain customer shipments to China between November 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 $252.5 million to the Department of Commerce.
Additionally, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) have notified Applied that they have closed their related investigations without action.
This settlement and the closure of the related investigations mark the conclusion of the U.S. government’s review. Applied Materials expressed its pleasure at the closure of the reviews and the civil settlement with the Department of Commerce, believing that resolving this matter is in the best interest of the company, its customers, employees, and shareholders.
The company emphasized that integrity and compliance are core to how it operates and 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 its technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation. Today the company's shares have moved 2.48% to a price of $327.01. For the full picture, make sure to review APPLIED MATERIALS INC /DE's 8-K report.
