Applied Materials Falls as Export Controls Weigh on Outlook
Live Mint-- Applied Materials Inc., the largest US maker of chip-manufacturing equipment, fell after issuing a lukewarm revenue forecast for the current period, citing the risk of export controls crimping its business. Chief Financial Officer Brice Hill said the company was “taking into account export control related headwinds.” China makes up roughly a third of the company’s sales, and stricter trade curbs from the US have made it harder to sell in that country. That’s because the company will have to stop servicing equipment at some customer sites in China, Chief Executive Officer Gary Dickerson said on a conference call with analysts. Applied Materials’ customer ranks include some of the biggest names in the chip industry, including Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. Those manufacturers order gear well ahead of starting production, making Applied Materials’ forecasts a barometer for future demand.
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