Chip Firm Projects Hundreds of Millions in Revenue Hit From BIS 50% Rule
Applied Materials, the largest American semiconductor equipment supplier, is projecting hundreds of millions of dollars in losses to its China-related revenue because of the Bureau of Industry and Security's new Affiliates Rule.
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The company believes the rule will lead to a $110 million drop in its net revenue for the fourth quarter of FY 2025 and a $600 million hit in FY 2026, it said in its latest SEC filing, released Oct. 2.
The rule, which extends certain BIS end-user controls to majority-owned affiliates of restricted parties (see 2509290017), "expands the list of companies subject to U.S. export restrictions," Applied Materials said. The company "expects that the BIS Affiliates Rule will further restrict its ability to export certain products and provide certain parts and services to specific China-based customers without a license."