China issued a strong warning to the US, threatening retaliatory measures if the Biden administration proceeds with plans to further restrict chip exports to Chinese companies. The potential new measures could significantly impact the global semiconductor industry and exacerbate existing trade tensions.
Applied Materials (AMAT) shares plummeted over 10% on Tuesday, mirroring the broader semiconductor industry’s decline following ASML’s disappointing guidance and concerns over potential U.S. chip export restrictions. ASML’s revised sales outlook, indicating a slower-than-expected recovery in key markets, triggered fears of a broader industry pullback, impacting Applied Materials’ future revenue prospects.
