The US Bureau of Industry and Security (BIS) has hit Applied Materials with a 252-million-dollar fine for illegally exporting semiconductor manufacturing equipment to China. It’s the second-highest penalty ever issued by BIS and equals twice the value of the unauthorized shipments.

The case centers on ion implanters shipped in 2021 and 2022 to a Chinese customer, identified by Reuters as SMIC. Instead of applying for the required export license to supply the Chinese foundry, Applied routed the tools via Korea for assembly before sending them on to China. BIS concluded the company failed to obtain mandatory approval for exports to a restricted party, violating US export control rules amid tightening curbs on advanced semiconductor technology flows to China.

