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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.