Applied Materials settles export controls probe for $253M; tax rate drops to 13% on Singapore incentives

Filed May 21, 2026 · Period ending April 26, 2026 · Compared to 10-Q May 22, 2025 · ~2 min read

Key Changes

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  Company paid $253M in Q2 to settle BIS inquiry into China shipments and export controls. Settlement includes suspended denial order that, if triggered by non-compliance, would bar certain product exports outside the U.S.

  Legal Proceedings verify on EDGAR →
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  Effective tax rate fell to 13.0% from 25.2% year-over-year, driven by remeasurement of deferred tax assets from new Singapore tax incentive agreements. Global minimum tax regime in Singapore expected to materially increase foreign taxes starting Q1 FY2026.

  MD&A: Tax Rate verify on EDGAR →
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  CHIPS Act investment tax credits reached $1.1B as of April 2026, up from $142M prior year. New OBBBA legislation increased credit rate from 25% to 35% for qualifying property placed in service after December 31, 2025, but accelerated deductions may reduce economic viability of using credits.

  MD&A: Tax Incentives verify on EDGAR →