Applied Materials Maintains Q1 Outlook

(Reuters) – Chip equipment maker Applied Materials (NASDAQ:AMAT) announced on Tuesday that it would not alter its first-quarter outlook despite the latest U.S. restrictions on semiconductor exports to China.

The company stated that this decision was based on its "initial assessment of the impact" caused by the new regulations.

The U.S. initiated its third crackdown within three years on China's semiconductor industry by announcing new rules on Monday that tighten regulations on chip equipment makers and curb exports to 140 Chinese companies.

This measure reflects one of the Biden administration's significant efforts to limit China's capacity to access and produce advanced chips, especially those that could enhance artificial intelligence technologies for military purposes or pose risks to U.S. national security.

Applied Materials, which supplies chipmaking tools to major companies like Samsung Electronics (KS:005930), TSMC, and Intel (NASDAQ:INTC), expects first-quarter revenue to be approximately $7.15 billion, with a variance of $400 million. Adjusted profit per share is anticipated to be around $2.29 at the midpoint of its forecast range.

In addition, ASML (AS:ASML) stated on Monday that it did not foresee any impact from the new restrictions on its recent financial guidance.