Applied Materials cuts quarterly revenue estimate on new China export curbs

(Reuters) -Semiconductor manufacturing equipment maker Applied Materials Inc (NASDAQ:) said on Wednesday new export curbs related to China’s chip industry may result in a revenue hit of over $1 billion in the fourth and first quarters.

Under the new regulations, U.S. companies must cease supplying Chinese chipmakers with equipment that can produce relatively advanced chips unless they first obtain a license.

Applied Materials now expects fourth-quarter net sales to be about $6.4 billion, plus or minus $250 million, compared with prior outlook of $6.65 billion, plus or minus $400 million.

The company also expects the new regulations to impact net sales in the first quarter of fiscal 2023 similar to the current quarter.

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