Applied Materials Forecasts Drop in Q4 Sales Due to New China Export Controls
U.S. semiconductor company Applied Materials expects its fiscal year 2022 fourth quarter sales to drop by about $400 million due to new U.S. export controls on semiconductor technology sold in China (see 2210070049), the company said this month. The company said the change decreased its fourth quarter business outlook for net sales from $6.65 billion to $6.4 billion. “The revised net sales outlook reflects the impact of the new export regulations partially offset by supply chain performance improvements,” it said.
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The company added that it’s “pursuing additional export licenses and authorizations where needed” and expects the controls to also hurt sales during the first quarter of FY 2023 “by a similar amount.” Applied Materials said it’s “business depends on international trade, and the company is committed to complying with all applicable trade regulations.”