REVEALED: 2 semiconductor stocks at risk from china export restrictions | Vintage Vibes

Semiconductor companies, including ASML (ASML) and Applied Materials (AMAT), could potentially be facing a new round of export restrictions to China from U.S. lawmakers. This time, officials seem to be targeting wafer fabrication equipment (WFE) exports to China. The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party recently addressed letters to ASML, AMAT, and more semiconductor companies, seeking details about their sales to China.

According to Bernstein Societe Generale Group, potential restrictions could jeopardize up to 50% of China WFE. “Our estimate for China WFE spending is $43B in 2024 and $41B in 2025, representing 36% of global WFE in 2025,” said Bernstein analysts, led by David Dai, in a Nov. 12 note. “Of China’s total WFE spending in 2025, we estimate that 15% is DRAM, and 36% is advanced logic; hence half of China’s WFE is at high risk from a potential restriction.”