Applied Materials' shares drop as stringent US export curbs weigh on China business

By Siddarth S and Kanchana Chakravarty (Reuters) -Applied Materials shares slid 5% before the bell on Friday as the chip equipment maker forecast reduced spending in China next year due to stringent U.S. export curbs. The U.S. government has cracked down on foreign companies, especially from China, that use subsidiaries and affiliates to circumvent export curbs on chipmaking tools and related products, hurting sales of Applied Materials and its rivals. China is the world's largest buyer of chipmaking tools since 2020. Applied's results, seen as an indicator for future semiconductor demand, followed similar warnings about China from rivals ASML and KLA Corp. However, analysts expect the hit to Applied's overall sales to be tempered as its share of China sales has fallen to the mid-20% range