(Reuters) – Chip-making equipment supplier Lam Research Corp forecast lesser-than-expected June-quarter revenue on Wednesday, as U.S. restrictions on sale of certain technology to China and weakness in the semiconductor market weigh on the business.
Wafer fabrication equipment (WFE) makers Lam Research, KLA Corp and Applied Materials Inc, have said their 2023 revenue projections are likely to be hit between $600 million and $2.5 billion due to the export restrictions. Meanwhile, their customers, mainly chip-makers, have cut back orders as personal computer and server sales dwindle.
Lam Research, whose shares dropped 2.2% after-market, forecast June-quarter revenue at $3.1 billion, plus or minus $300 million, lower than analysts’ projection of $3.47 billion, according to Refinitiv.
The company said revenue fell 4.7% to $3.87 billion in the quarter ended March 26, its first quarterly drop in over three years, but higher than analysts’ estimate of $3.83 billion, according to Refinitiv.
Lam Research cut 7% of its workforce in January and had projected WEF spending is likely fall to mid-$70 billion range this year from mid-$90 billion in 2022. The company had flagged pull-back in business, particularly from customers in the memory devices market.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna Chandra Eluri)
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