According to reports, U.S. chip-equipment suppliers are backing off from support of China’s leading semiconductor manufacturer and pausing business activities. This is tied to U.S. Commerce Department’s semiconductor export restrictions.
While the U.S. and much of the world is dependent on China as a supplier of computer chips, China for its part is dependent on certain American equipment makers to make those chips.
China’s state-owned Yangtze Memory Technologies Co. is now facing a freeze in support from key suppliers including KLA Corp. and Lam Research Corp.
This all comes after recent curbs placed on China’s chipmakers from the U.S.
Equipment maker Applied Materials Inc. last week lowered its sales estimates for the 4th quarter by approximately $400 million, pointing to the restrictions as the key factor.
