Applied Materials Reaches Settlement with U.S. Commerce Department

Semiconductor equipment maker pays $252.5 million to resolve export compliance issues.

Published on Feb. 12, 2026

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Applied Materials, Inc. 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 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. The U.S. Department of Justice and the U.S. Securities and Exchange Commission have also closed their related investigations without action.

Why it matters

This settlement highlights the importance of strict export control compliance in the semiconductor industry, which is critical to national security and technological innovation. The case underscores the need for companies to maintain robust trade compliance practices, especially when dealing with sensitive technologies and customers in geopolitically sensitive regions.

The details

Applied Materials acknowledged that certain customer shipments to China between November 2020 and July 2022 did not comply with U.S. Export Administration Regulations, due to the company's misunderstanding of the applicability of those regulations. To resolve the matter, Applied has agreed to pay a $252.5 million settlement to the Department of Commerce. The company stated that integrity and compliance are core to its operations, and it remains committed to maintaining strong export-control and trade-compliance practices globally.

  • The alleged non-compliant shipments occurred between November 2020 and July 2022.
  • The settlement agreement was reached on February 11, 2026.

The players

Applied Materials, Inc.

A leading global provider of materials engineering solutions for the semiconductor, display and related industries.

U.S. Department of Commerce, Bureau of Industry and Security (BIS)

The federal agency responsible for enforcing export control regulations in the United States.

U.S. Department of Justice

The federal law enforcement agency that investigated the alleged export compliance issues.

U.S. Securities and Exchange Commission (SEC)

The federal agency that investigated the alleged export compliance issues.

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What they’re saying

“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.”

— Applied Materials (Globe Newswire)

What’s next

With the settlement agreement in place, Applied Materials is now focused on executing its technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation.

The takeaway

This case underscores the critical importance of strict export control compliance in the semiconductor industry, which is essential for national security and technological leadership. Companies must maintain robust trade compliance practices, especially when dealing with sensitive technologies and customers in geopolitically sensitive regions, to avoid costly legal and financial consequences.