U.S. companies caught in crossfire of China chip crackdown

Applied Material expects up to $550m hit from Washington's ban on equipment sales

The U.S. has been gradually tightening semiconductor restrictions on China, and technology requirements are more stringent this time around. © Reuters

KAZUYUKI OKUDAIRA, KOTARO HOSOKAWA and RYOSUKE EGUCHI, Nikkei staff writers

October 16, 2022 05:31 JST

PALO ALTO, U.S./SEOUL/TOKYO -- The impact of Washington tightening restrictions on advanced semiconductor technology exports to China is being felt at home.

California-based Applied Materials, a leading manufacturing equipment supplier, has downgraded its August-October earnings outlook, while fellow American equipment suppliers Lam Research and KLA have temporarily suspended support for some Chinese chipmakers.