China Weighs on U.S. Chipmaking Gear Specialist Lam Research

U.S. chipmaking equipment specialist Lam Research Corp. reported shrinking quarterly revenue from its largest market — the Chinese mainland — due to declining demand in the industry’s memory segment and Washington’s controls on tech exports to the Asian country.

Lam Research’s revenue from the mainland fell 17% to $1.27 billion in the fourth quarter of 2022 from the previous quarter, according to its latest earnings report, even as its total revenue grew about 25% yearly. At the same time, its revenue from the region is making up less and less of the company’s total, falling to 24% from a peak of 37% in the quarter that ended in June 2021. Despite the decline, the Chinese mainland remained Lam Research’s largest market while Taiwan is the third largest with a 19% share.