Recent media reports suggested that Applied Materials (AMAT), a global leader in semiconductor manufacturing equipment, would halt supplies of memory and chip equipment to China due to U.S. export restrictions, with projected declines in China's chip manufacturing equipment spending by 2026. In response, Applied Materials issued an official statement clarifying its business operations in China. The company emphasized its continued commitment to providing high-quality products and services to Chinese clients while complying with applicable laws and regulations.
Applied Materials noted that over the past 12 months, multiple changes in U.S. trade regulations have reduced the market scope for American businesses in China. However, the company currently anticipates no significant shifts in market restrictions by 2026. Reports of policy tightening primarily stem from tensions between December 2024 and January 2025, rather than recent developments.
[Clarification Statement on Applied Materials’ Business in China] Certain media outlets have inaccurately portrayed Applied Materials' operations in China. The company reaffirms its dedication to serving Chinese customers with premium products and services, adhering to all relevant legal and regulatory requirements. While U.S. trade rule adjustments have impacted market access, Applied Materials does not foresee major regulatory changes affecting its business in China by 2026.
Founded in 1967 and headquartered in California, Applied Materials is a global leader in semiconductor equipment, often referred to as the "supermarket of semiconductor tools." Its technologies underpin nearly every new chip and advanced display worldwide, holding a 25% market share in wafer fabrication equipment. With over 22,000 patents globally, the company reported fiscal 2024 revenue of $27.18 billion and employs approximately 35,700 people across 207 locations in 24 countries.
Applied Materials established its first China customer service center in Beijing in 1984, becoming the first international semiconductor equipment firm to enter the Chinese market. Today, it operates more than 10 sales, service, R&D, and training centers in the country. Despite fluctuations in China revenue—accounting for 25% in Q1 2025 due to U.S.-China trade and export controls—Applied Materials remains a key contributor to China's semiconductor industry through equipment and technological support.