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The consequences of the US escalating the chip ban on China are gradually emerging. According to the financial report released by the American semiconductor equipment company Fanlin Group (also known as Ram Research) on the 19th, due to the impact of the relevant ban, the group's revenue in 2023 may drop by 2 billion to 2.5 billion US dollars.

　　As the world's fourth-largest semiconductor equipment company, Fanlin Group announced its financial results for the first quarter of the 2023 fiscal year ended September 25 on Wednesday. Data show that the operating income of Fanlin Group reached US$5.1 billion in the quarter, a year-on-year increase of 17.9%, exceeding market expectations. China is the largest contributor to its revenue, accounting for 30% of total revenue.

　　However, the chip ban introduced by the US government has cast a shadow over the future performance expectations of the Lam Group. According to Bloomberg, the company's president and CEO Timothy Archer said on an earnings call that the U.S. government's new export control policies are expected to impact the company's 2023 revenue by $2 billion to $2.5 billion. Given that the semiconductor equipment maker is expected to generate more than $18 billion in revenue this year, that means its revenue in China could be nearly halved by then.

　　In addition, Lam Group also expects that the company's operating income will be $5.1 billion in the following second quarter, which is in line with the just released first quarter data, and the gross profit margin will be lower than the performance of the first quarter. The company's chief financial officer, Doug Bettinger, said the second-quarter results would have been much higher had it not been for the impact of the U.S. chip ban. "In the Chinese market, we've lost some quality customers, and obviously that's going to continue for a while," he said.

　　In the capital market, Lam Group rose 2.49% to $330.08 per share at the close on Wednesday. But after the earnings call on the 19th, the company's stock price fell 2.1% after the market. So far in 2022, Fanlin Group's share price has halved, down 54%.

　　On October 7, the U.S. Department of Commerce issued a number of export control measures for chips to China. Advanced semiconductor production equipment produced by U.S. companies must obtain a license from the U.S. Department of Commerce before exporting to China. After the announcement of the ban, Fanlin Group, Applied Materials, etc. suspended the export and technical support of related products in China.

　　U.S. semiconductor equipment company Applied Materials said on October 13 that due to the impact of the U.S. chip ban on China, net sales for the quarter ended October 30 were expected to fall by $250 million to $550 million, and the fourth quarter of the 2022 fiscal year was lowered. Sales and profit expectations. According to market statistics, Applied Materials' revenue from mainland China in 2021 will account for about 33.8%.

　　The worse-than-expected performance of U.S. semiconductor companies is not an isolated case. Another U.S. company, Micron Technology, issued a profit forecast on September 30 saying that adjusted revenue in the first quarter of fiscal 2023 would be about $1 billion lower than analysts had expected. AMD said on Oct. 7 that it expects third-quarter 2022 sales of $5.6 billion, about $1.1 billion below its previous guidance. After AMD's performance warning, its stock price plummeted 13.8% that day, dragging down the US stock semiconductor sector collectively.

　　China is the world's largest semiconductor market, and U.S. semiconductor companies such as Intel, Qualcomm, and Texas Instruments have a very high proportion of their revenue from China. Bloomberg pointed out that the U.S. government announced new restrictions on Chinese imports of U.S. semiconductor technology, which on the one hand made relations between the two countries more tense, and on the other hand brought new complications to the U.S. chip industry, which has been trapped in declining demand. Reuters quoted people familiar with the matter as saying that the United States is trying to deal with the unintended consequences of the new export ban and prevent damage to its own semiconductor supply chain.

　　The spokesperson of the Chinese Ministry of Foreign Affairs stated that the formation and development of the global industrial chain and supply chain is the result of the combined effect of market laws and corporate choices. Artificial restrictions are set for political purposes, destabilizing production and supply chains, harming others and not oneself, and will only make the existing The fragile world economy is adding to the woes. China firmly opposes the U.S.'s wanton generalization of the concept of national security, abuse of export control measures, and unreasonable suppression of Chinese companies.