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Tom’s Hardware
Tom’s Hardware
Technology
Luke James

Applied Materials to pay $252 million penalty for selling chipmaking tools to banned Chinese firm — settles over alleged 56 tool exports to chipmaker SMIC following Entity List designation

SMIC.

The U.S. Department of Commerce has ordered Applied Materials to pay a $252 million civil penalty to settle allegations that it illegally exported semiconductor manufacturing equipment to subsidiaries of Semiconductor Manufacturing International Corp (SMIC) after the Chinese foundry had been placed on the U.S. Entity List.

According to the Bureau of Industry and Security (BIS), the violations involved 56 exports or attempted exports of ion implanter systems and related modules between November 2020 and July 2022. The transactions were valued at some $126 million, with the final penalty set at twice that amount, which Commerce described as the statutory maximum.

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