October 13, 2022
According to Reuters, KLA (KLA), the world's fifth-largest semiconductor equipment supplier, stopped providing sales and services to corporate customers in mainland China starting Wednesday (12th) in order to comply with recent U.S. government regulations.
The move underscores huge business headwinds facing chipmakers and chip equipment makers around the world, as the Biden administration published a sweeping set of export controls on Friday aimed at slowing China's progress in advanced chip manufacturing.
China is KLA's largest geographic market, bringing in $2.66 billion in sales, or nearly 30% of its total revenue in the last fiscal year that ended in June, according to the company's financial filings.
This move will have a substantial impact on Chinese-related companies in terms of chip supply, foundry, and technology acquisition in the short term.
For the LCD display industry, this move may affect the volatility of chip prices and chip supply. We recommend that customers can prepare in advance to deal with this impact and ensure the normal operation of production.
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