Applied Materials Forecasts โค$600 Million Revenue Loss Due to Expanded China Export Restrictions
SANTA CLARA, CA – Applied Materials Inc.,โข the leading U.S. manufacturer of semiconductor manufacturing equipment, has warned that expanded U.S. export controls โto China โwill negatively impact its revenue. The company anticipates โคa $600 million decrease in fiscal year 2026 revenue as a result of the new restrictions.
According to aโค regulatory filing made on Thursday, the U.S. Commerce Department‘sโค Bureau of Industry and Security (BIS) broadened the scope of export controls this โคweek, impacting a wider range of โcompanies. Applied Materials stated the new rule directly affects its ability to sell certain products to Chinese entities.
The projected $600 millionโค lossโข is expected to materialize during the fiscal year 2026, which โconcludes in October ofโค that โฃyear. This represents a important, though not crippling, โฃblowโข to the company’s projected earnings.
The move is part of a broader U.S. strategy to limit China’s access to advanced technologies,โ notably those with โpotential military applications. โฃThe BISโค hasโ been steadily tightening export controls on semiconductors and related equipment in โrecentโ years.
