Applied Materials Inc (NASDAQ:AMAT, ETR:AP2) shares slipped more than 3% in early trading on Friday after the maker of machinery used to manufacture semiconductors revealed in a regulatory filing that new US export restrictions to China would hurt its revenue.
The company expects the decision will result in about $600 million of lost revenue in fiscal 2026, which runs through next October.
This week, the US Commerce Department’s Bureau of Industry and Security issued a new rule that broadens the range of companies subject to export restrictions to China.
The rule aims to prevent sanctioned companies from using affiliates to access restricted US goods, Bloomberg reported.
The measure noted that subsidiaries that are at least 50% owned by blacklisted companies will now face the same curbs as their sanctioned parent companies.
The move is seen as being part of the US government’s push to limit China’s ability to develop a domestic chip supply.