U.S. CHIP TOOLMAKERS PUSH SUPPLIERS TO CUT CHINESE TIES - WSJ

Applied Materials $AMAT (-3.25%) and Lam Research $LRCX (-0.19%) have instructed suppliers to stop sourcing components or taking investments from Chinese entities, driven by U.S. government pressure to reduce China’s role in the semiconductor supply chain, per the WSJ. Suppliers failing to comply risk losing their vendor status.

These restrictions are expected to raise costs due to limited non-Chinese alternatives. Veeco $VECO (-0.77%) has issued similar guidelines, mandating the end of Chinese supplier reliance by 2025. The shift basically reflects Washington’s increasingly strict stance on tech imports and concerns over China’s influence on U.S.-critical tech.