Applied Materials Inc. will pay $252.5 million to settle a US Commerce Department investigation into improper exports to China, ending a yearslong saga for the largest American supplier of chipmaking machinery. The settlement resolves allegations that the company violated export controls by shipping sensitive technology to Chinese entities without proper authorization.

This marks a significant regulatory penalty for a firm central to the global semiconductor supply chain, potentially impacting investor confidence and future export compliance protocols. The resolution follows a probe initiated in 2019, highlighting ongoing scrutiny of US tech firms' international operations.