Applied Materials settles BIS export-control case
Applied Materials, Inc. announced it has resolved a U.S. government review of its export-control compliance related to certain shipments to China between November 2020 and July 2022.
Rhea-AI Filing Summary
Applied Materials, Inc. announced it has resolved a U.S. government review of its export-control compliance related to certain shipments to China between November 2020 and July 2022. The company entered into a settlement agreement with the U.S. Commerce Department’s Bureau of Industry and Security, agreeing to pay $252.5 million in a one-time civil payment and to conduct internal audits, training and reporting on export controls compliance.
The U.S. Department of Justice and the U.S. Securities and Exchange Commission have closed their related inquiries with no enforcement action. Applied states that resolving the matter is in the best interest of the company and says it remains committed to strong export-control and trade-compliance practices while focusing on its technology roadmap and next-generation semiconductor opportunities.
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- Applied Materials will pay $252.5 million in a one-time civil settlement to the U.S. Commerce Department’s BIS over China export-control compliance issues.
Insights
Large export-control settlement closes multi-agency probes but highlights compliance risk.
Applied Materials is paying $252.5 million to the U.S. Commerce Department’s Bureau of Industry and Security to resolve allegations that some China shipments between November 2020 and July 2022 violated U.S. Export Administration Regulations. As part of the agreement, the company will conduct internal audits and maintain export-compliance training and reporting mechanisms.
The same matter had drawn investigations from the U.S. Department of Justice and the SEC; both agencies have now closed their inquiries without taking enforcement action. That outcome limits additional legal exposure, but the settlement still represents a sizable one-time cost and underscores the importance of robust trade-compliance controls for a business tied to global semiconductor equipment demand.
Management characterizes the resolution as in the best interest of shareholders and emphasizes a continued focus on its technology roadmap and next-generation semiconductor innovation. Future company filings may offer more detail on how the payment and enhanced compliance activities affect margins and operating expenses in upcoming reporting periods.
8-K Event Classification
Item 7.01 — Regulation FD Disclosure
1 item
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
FAQ
What regulatory investigations did Applied Materials (AMAT) resolve in this update?
Applied Materials resolved a Bureau of Industry and Security inquiry regarding certain China shipments and export-control compliance. At the same time, the U.S. Department of Justice and SEC informed the company they have closed their related investigations without taking enforcement action.
How much is Applied Materials (AMAT) paying under the BIS settlement?
Under the settlement with the U.S. Commerce Department’s BIS, Applied Materials agreed to pay a one-time civil penalty of $252.5 million. The agreement also requires internal audits, ongoing export-controls compliance training and reporting mechanisms across the company’s operations.
What conduct was at issue in the Applied Materials (AMAT) export-control case?
The settlement resolves BIS allegations that certain customer shipments to China between November 2020 and July 2022 did not comply with U.S. Export Administration Regulations. Applied Materials attributed the matter to a misunderstanding of how those regulations applied to the shipments in question.
Did the DOJ or SEC take enforcement action against Applied Materials (AMAT)?
No. Applied Materials stated that the U.S. Department of Justice and the SEC have closed their respective investigations related to the export-control matter. Both agencies concluded their reviews without bringing enforcement actions against the company.
What compliance measures is Applied Materials (AMAT) committing to after the settlement?
Applied Materials agreed to conduct internal audits of its export-controls compliance program and to maintain export compliance training and reporting mechanisms. The company emphasized that integrity and compliance remain core to its operations across global markets and technologies.
How does Applied Materials (AMAT) view the impact of the BIS settlement?
Applied Materials stated that resolving the matter is in the best interest of the company, customers, employees and shareholders. With the U.S. government’s review concluded, management says it is focused on executing its technology roadmap and supporting demand for next-generation semiconductor innovation.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________
FORM 8-K
____________________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 11, 2026
____________________________________________________________________
Applied Materials, Inc.
(Exact name of registrant as specified in its charter)
____________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (408 ) 727-5555
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging Growth Company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act). ☐
Item 8.01 Other Events.
As previously disclosed, Applied Materials, Inc. (“Applied” or the “Company”) has been cooperating with the U.S. Department of Justice (“DOJ”), the U.S. Securities and Exchange Commission (“SEC”), and the U.S. Commerce Department Bureau of Industry and Security (“BIS”) after receiving subpoenas from those agencies. The DOJ and the SEC have informed the Company that they have closed their respective inquiries, and no enforcement action has been taken by either agency. On February 11, 2026, the Company entered into a settlement agreement with BIS (the “Settlement Agreement”) to resolve its inquiry relating to certain China customer shipments and export controls compliance. Pursuant to the Settlement Agreement, the Company has agreed to pay $252.5 million to BIS in a one-time payment, and agreed to conduct internal audits of the Company’s export controls compliance program and maintain export compliance training and reporting mechanisms.
Item 7.01 Regulation FD Disclosure.
Applied issued a press release announcing the settlement with BIS, which is attached hereto as Exhibit 99.1.
The information in this Item 7.01 and Exhibit 99.1 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section, and shall not be deemed to be incorporated by reference in any filing of Applied under the Securities Act of 1933, as amended, or the Exchange Act, unless expressly incorporated by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press Release issued by Applied Materials, Inc., dated February 11, 2026 | |||||||
| 104 | Cover Page Interactive Data File (formatted as inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Applied Materials, Inc. (Registrant) | ||||||||||||||
| Date: | February 11, 2026 | By: | /s/ Teri A. Little | |||||||||||
| Teri A. Little | ||||||||||||||
| Senior Vice President, Chief Legal Officer and Corporate Secretary | ||||||||||||||
Exhibit 99.1
Applied Materials Reaches Resolution with the U.S. Department of Commerce
SANTA CLARA, Calif., Feb. 11, 2026 – Applied Materials, Inc. today announced that it has reached a settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The settlement resolves BIS’s allegations that certain customer shipments to China between Nov. 2020 and July 2022 did not comply with the U.S. Export Administration Regulations, based on the company’s misunderstanding of the applicability of those regulations. Under the terms of the settlement, Applied has agreed to pay $252.5 million to the Department of Commerce. In addition, the U.S. Department of Justice and the U.S. Securities and Exchange Commission (SEC) have notified Applied that they have closed their related investigations without action.
Applied Materials is pleased that the Department of Justice and SEC have closed their respective reviews, and that a civil settlement has been reached with the Department of Commerce, concluding the U.S. government’s review. Applied believes that resolving this matter is in the best interest of the company, its customers, employees and shareholders. Integrity and compliance are core to how Applied operates, and the company remains fully committed to maintaining strong export-control and trade-compliance practices across its global operations. With this matter closed, Applied is focused on executing our technology roadmap and supporting the accelerating demand for next-generation semiconductor innovation.
Forward-Looking Statements
This press release contains forward-looking statements, including those regarding the company’s business and growth strategies, industry outlooks, expected benefits of the settlement with BIS and the effectiveness of the company’s compliance programs. These statements and their underlying assumptions are subject to risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ materially from those expressed or implied by such statements include the risks and uncertainties described in Applied’s most recent Form 10-K and other Securities and Exchange Commission filings. All forward-looking statements are based on management’s current estimates, projections and assumptions, and Applied assumes no obligation to update them.
About Applied Materials
Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions that are at the foundation of virtually every new semiconductor and advanced display in the world. The technology we create is essential to advancing AI and accelerating the commercialization of next-generation chips. At Applied, we push the boundaries of science and engineering to deliver material innovation that changes the world. Learn more at www.appliedmaterials.com.
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