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Abstract:(Reuters) – Applied Materials forecast third-quarter revenue below expectations on Thursday, suggesting that supply bottlenecks, exacerbated by the lockdowns in China, would hamper its ability to meet demand for its chipmaking tools.
Reuters – Applied Materials forecast thirdquarter revenue below expectations on Thursday, suggesting that supply bottlenecks, exacerbated by the lockdowns in China, would hamper its ability to meet demand for its chipmaking tools.
Shares of the chip tools maker fell 5.1 to 105.10 in extended trading.
A semiconductor and parts shortage for machines used to produce chips has been pressuring the broader chip supply chain that is already facing more demand than chipmakers are able to meet.
“Demand for Applied Materials products and services has never been stronger, yet we remain constrained by ongoing supply chain issues,” Chief Executive Officer Gary Dickerson said.
Taiwan Semiconductor Manufacturing Co, the worlds largest contract chipmaker, last month had warned that its tool suppliers were facing labour, component and chip constraints, which is extending delivery time for both older technology as well as advanced chip making machines.
Applied Materials estimates currentquarter revenue of 6.25 billion, plus or minus 400 million. Analysts on average expect revenue of 6.73 billion, according to IBES data from Refinitiv.p
The company said revenue rose 12 to 6.25 billion in the second quarter ended May 1, below estimates of 6.38 billion.
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