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TAP TIMES -6- DECEMBER 2022

A tale (from 4) said it now forecasts sales to be $6.5 bil-
lion, plus or minus $250 million, compared
The United States’ answer to China’s grand to the prior $665 billion, plus or minus
scheme includes the October 7 export con- $400 million.
trols and the recently passed CHIPS Act.
“The revised outlook,” Applied said, “ re-
New fabs flects the impact of the new export regu-
This act, which will allow large chip makers lations, partially offset by supply chain
to divvy up about $56 billion, is meant to improvements.” Applied revenue for its
increase the production of semiconductors prior fiscal year, ending July 31, 2022 was
in the U.S. $25.15 billion.

There have been several announcements Double-edged sword
from key semiconductor makers this year Although unexpectedly disruptive, the Oc-
about plans for new fabs. These include tober 7 sanctions were a two-edge sword.
megafabs in Ohio by Intel and in New York While cutting U.S. tool makers off from
state by Micron Technology. some of its Chinese revenue, it is likely
to open a few new markets and may spur
It appears foreign chip makers with U.S. further product innovation, as well.
operations may also get a cut of the CHIPS to page 8
Act money. This potential windfall has
probably convinced company’s such as S.
Korea’s Samsung to expand its U.S. manu-
facturing locations.

The Korean giant recently announced
plans to build several fabs at an existing
site in Austin and other Texas locations.

Those announcements were good news for
the semiconductor equipment suppliers, as
they saw billions drifting away from China
sales.
A worker at ASML assembles a DUV machine at the company’s
Applied revises its 4Q outlook Netherlands’ manufacturing site. ASML will also be affected by
the Biden sanctions. (ASML)I
Applied Materials, among the industry’s
oldest and largest sellers of front-end
equipment has revised its 4Q22 revenue
outlook as the result of the October 7 con-
trols.

On October 12, less than a week after the
Administration’s China announcement,
Applied said that the sanctions will reduce
its net sales by about $400 million, plus or
minus $150 million.

Intel recently broke ground on its proposed $20 billion fab site
The Santa Clara, Calif.-based company near Columbus, Ohio. (Intel)