Chip Industry Braces for ‘Heavy Blow’ From China Export Curbs
- Applied Materials says rules to cut revenue by $400 million
- Chip-technology makers have been scrambling to adapt to rules
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The Biden administration’s new restrictions on doing business with China are sending shock waves through the global semiconductor industry, with chip-equipment makers girding for perhaps the most painful fallout.
Applied Materials Inc., a leading maker of chipmaking equipment, on Wednesday slashed its forecast for the fourth quarter, warning that the new export regulations will reduce sales by about $400 million in the period. It now expects revenue of about $6.4 billion, plus or minus $250 million, compared with a previous forecast of roughly $6.65 billion.