Yazılar

Applied Materials Cuts Forecast Amid China Slowdown and Export-Restrictions

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Applied Materials (AMAT.O) forecasted fourth-quarter revenue and profit below analyst expectations on Thursday, citing weak demand in China and uneven orders from customers impacted by tariff uncertainty. Shares fell nearly 13% in after-hours trading.

The ongoing U.S.-China trade tensions and export restrictions on advanced semiconductor equipment have complicated forecasting, weighing on orders for chipmaking tools suppliers like Applied Materials. China accounted for 35% of Applied’s total sales in the July quarter, making it a critical market.

CFO Brice Hill said the company expects a revenue decline in the fourth quarter due to both the absorption of recently added capacity in China and non-linear demand from leading-edge customers. Tightened export controls prevent sales of the most advanced chipmaking equipment to Chinese clients. Meanwhile, Chinese chipmakers are pausing new orders for older-generation chips used in automotive, industrial, and consumer electronics.

Applied projected fourth-quarter revenue of $6.70 billion, plus or minus $500 million, below the $7.33 billion analysts had anticipated. Adjusted profit per share is expected at $2.11, compared with estimates of $2.39. The forecast assumes no approvals for pending U.S. export license applications.

The company’s third-quarter results exceeded expectations, with revenue up 8% to $7.30 billion and adjusted earnings per share at $2.48, above analyst estimates of $2.36.

EU Firm on AI Rules Timeline Despite Industry Calls for Delay

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The European Commission reaffirmed on Friday that it will adhere to the legal timeline for implementing the European Union’s groundbreaking Artificial Intelligence Act, rejecting recent appeals from major tech companies and some member states to postpone the rollout.

Key Points:

  • Major tech players including Alphabet (Google), Meta (Facebook), as well as European firms like Mistral and ASML, had urged the Commission to delay the AI Act by several years.

  • Commission spokesperson Thomas Regnier made clear at a press conference:

    • No pause, no grace period, and no stop-the-clock on the AI Act timeline.

    • Initial provisions took effect in February 2024.

    • Rules for general purpose AI models will begin enforcement in August 2024.

    • Requirements for high-risk AI models will start in August 2026.

  • The Commission indicated plans to simplify digital rules later this year, potentially reducing reporting obligations for smaller companies.

  • Concerns from companies center on the compliance costs and strict regulations, as the AI Act seeks to regulate a technology critical to sectors dominated by the US and China.

ASM to Pass Tariff Costs to Customers, Maintains Competitive Edge

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ASM International, Europe’s second-largest semiconductor equipment supplier, announced it will pass on any tariff-related cost increases to customers and the broader value chain. In a meeting with Bank of America analysts, ASM’s CEO and CFO emphasized that the company’s manufacturing flexibility ensures it won’t be at a disadvantage compared to global peers.

Key Points:

  • ASM said it would adjust pricing to offset potential cost pressures from U.S. trade tariffs, a strategy aligned with competitors like ASML, which previously stated that U.S. chipmakers would bear the bulk of such costs.

  • The Dutch company manufactures wafer fab processing equipment, vital for chipmakers like Intel and TSMC as they adopt next-gen Gate-All-Around transistor designs.

  • In other areas, ASM competes with major U.S. firms like Applied Materials and LAM Research, and is noted to be more exposed to the U.S. market than other European peers such as ASML and BE Semiconductor.

Market Outlook:

ASM also provided a bullish forecast for China, saying Chinese sales could hit the high end—or exceed—their 2025 guidance. The company previously estimated that China would represent between 20–29% of its total sales in 2025.

This positive outlook aligns with ASML’s recent commentary, which noted stronger-than-expected Chinese demand in its own Q1 report.

Despite rising geopolitical tensions and trade restrictions, ASM appears confident in navigating the shifting global semiconductor landscape, leveraging pricing power, regional flexibility, and strong demand from Asia.