“The US government's new restrictions on sales of equipment, parts, and services for specific technologies and customers in China are further impacting equipment demand in a declining market,” said Tim Archer, CEO of US chip equipment giant Lam Research. 1/4 $LRCX #semiconductor
2/4 Lam forecast the China export restrictions would cost US$2 billion to $2.5 billion in sales in 2023, ¾ on the system side and ¼ on the services side of its business. $LRCX #semiconductor
3/4 The China restrictions immediately pulled the spare parts business out of Lam’s revenue plan, as it cannot sell spares to certain customers and technologies in China. Similarly, Lam can't service the tools in China at restricted customers and technologies, Archer said.
4/4 The China restrictions are an even bigger problem now as the semiconductor demand fades:
"We see a substantially weaker demand environment ...," Archer said, adding the company plans to cut approximately 1,300 employees. $LRCX #semiconductor
"We see a substantially weaker demand environment ...," Archer said, adding the company plans to cut approximately 1,300 employees. $LRCX #semiconductor
Archer made the comments at the company's 4th quarter investors' conference. Transcript here: fool.com/earnings/call-…
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