Chip Industry Braces for ‘Heavy Blow’ From China Export Curbs

(Bloomberg) — The Biden administration’s new restrictions on doing business with China are sending shock waves through the global semiconductor industry and forcing chip-equipment makers to gird for perhaps the most painful fallout.

Applied Materials Inc., a leading maker of chipmaking equipment, slashed its forecast Wednesday for the fourth quarter, warning that the new 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.