Applied Materials, a large semiconductor manufacturer of semiconductor equipment, warned that due to the US government's regulatory list to expand exports to China, US$600 million may be subject to an impact in the 2026 conference.
Seeing Alpha, Reuters and other foreign power reports, the 8-K document submitted to the US Securities and Exchange Commission (SEC) on the 2nd pointed out that the Bureau of Industry and Safety (BIS), a subsidiary of the Ministry of Commerce, issued a new regulation on September 29, adding a list of companies subject to US export controls (that is, the "BIS affiliated company regulations").
It is pointed out that the provisions of new developments are likely to result in a reduction of US$110 million in the fourth quarter (August-October) and a reduction of US$600 million in 2026.
The US Department of Commerce issued a regulation on September 29 to prevent sanctioned companies from using related companies to obtain regulated U.S. goods. According to regulations, if a subsidiary has at least 50% of its shares held by the parent company that is blacklisted, it will face the same export control as the parent company.
Competitive materials and competitors such as ASML Holding N.V., the Dutch semiconductor equipment industry, have long been stressed due to weak demand in China and the problems of US taxes. The prospects for Q4 revenue and profit in August are poor.
On the 2nd, the stock price fell by 2.69% in normal trading and closed at US$223.59, reaching a new closing high since July 16, 2024; after the trading, the stock price fell by more than 5%, but soon after the decline closed, down 3.48% before press time and reported US$215.81.
Other semiconductor equipment stocks are in the U.S. stock market. As of press time, ASML ADR, semiconductor etching machine manufacturer Lam Research Corp., and crystal test equipment manufacturer KLA Corporation, fell 1.28%, 2.31%, and 2.65%, respectively.