US Imposes $250M Fine on Applied Materials for Illegal Semiconductor Exports to SMIC via South Korea
The US Department of Commerce's BIS fined Applied Materials $250 million for violating export controls by illegally exporting semiconductor equipment to China's SMIC through its South Korean subsidiary. This penalty follows 56 violations related to the transshipment of equipment valued at $126 million without necessary approvals. The BIS confirmed that Applied Materials has implemented a compliance monitoring program and terminated employees responsible for the violations.
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The US Department of Commerce's Bureau of Industry and Security (BIS) fined Applied Materials $250 million due to 56 violations of export control regulations. The violations occurred between 2021 and 2022 when the company exported ion implantation equipment to SMIC, China's largest foundry, via its Korean subsidiary, Applied Materials Korea, without required approvals.
The total value of the illegally exported equipment is approximately $126 million. The US maintains strict controls on semiconductor exports to prevent technology transfer to China. Following the agreement, Applied Materials established a monitoring program for compliance and terminated employees responsible for the infractions.
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