US chipmaker fined $252 million for illegal sales to China's SMIC
Applied Materials, a major US chip equipment maker, just got slapped with a $252 million fine for secretly sending high-tech gear to China's SMIC—despite strict export bans.
The company and its South Korean arm made 56 unauthorized shipments in 2021 and 2022, routing machines from Massachusetts through Korea to get around the rules.
These deals were worth $126 million.
Settlement marks end of investigations
SMIC had already been blacklisted by the US in late 2020 because of its military connections, making these exports illegal without special permission.
After getting caught, Applied Materials says this settlement closes all related investigations—no further action from the DOJ or SEC.
The case highlights how tech trade between the US and China is under serious watch these days.