Applied Materials' largest chip manufacturing equipment manufacturer, downgraded its forecast for the fourth quarter, new export regulations have affected the entire industry, and Applied Materials' sales to China have also been affected.
According to a statement Wednesday, the company estimates that new export regulations will reduce sales by about $400 million during this period. The company currently expects revenue to be around $6.4 billion, compared with a previous forecast of about $6.65 billion.
U.S. companies must stop providing Chinese chip manufacturers with equipment that can produce relatively advanced chips unless they first obtain licenses.
Applied Materials Applied Materials Company said that these regulations affect the sales of wafer manufacturing equipment and related parts and services.
It became the first semiconductor company in the United States to use U.S. dollar data to measure its influence.
chip equipment manufacturers have been scrambling to adjust to adapt to these restrictions, which are at a time when the industry is hit by a decline in demand for computers, smartphones and other electronic devices and high inflation.
Another top manufacturer of manufacturing equipment, ASML Holding, told its employees in the United States not to serve customers of Chinese companies. The -based company has been selling its deep ultraviolet (DUV) machines to Chinese customers, but has been suppressing its more advanced extreme ultraviolet (EUV) technology.
Companies like Applied Materials and Intel cannot leave China easily. China is the largest single market for their products and part of the global supply chain for electronic products.
Evercore ISI analyst Muse said that in 2021, the Chinese market accounted for 29% of total applied materials sales.
in a recent report mentioned that the sales of tool manufacturers including KLA Corp3, Lam Research Corp and Applied Materials are expected to be affected by 5% to 10%, and any restrictions on China in the United States will further affect revenue.
Shares of Applied Materials have fallen about 14% since last Thursday, the day before the new restrictions were announced.
Applied Materials also lowered its profit expectations. After excluding some items, earnings per share will be between $1.54 and $1.78 for the fourth quarter ended October 30. That's lower than the previous $2.18.
The company said the lower profit outlook was due to reduced sales, as well as inventory and manufacturing write-downs related to new export regulations. Applied Materials also expects the regulations to have roughly the same impact on the company's first-quarter sales.
Perhaps the United States is complacent, thinking that it has already gained the upper hand in this "technology competition", but it does not know that the companies that rely on the Chinese market are those who rely on the Chinese market. The Chinese market has huge potential, and the United States insists on doing it alone, which can only backfire.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-