Chip Industry Braces for ‘Heavy Blow’ From China Export Curbs

The Biden administration’s new restrictions on doing business with China are sending shock waves through the global semiconductor industry, with chip-equipment makers girding for perhaps the most painful fallout.

Applied Materials Inc., a leading maker of chipmaking equipment, on Wednesday slashedits forecast for the fourth quarter, warning that the new export regulations will reduce sales by about $400 million in the period. It now expects revenue of about $6.4 billion, plus or minus $250 million, compared with a previous forecast of roughly $6.65 billion.

In another sign of retreat, Applied Materials, along with KLA Corp. and Lam Research ...