Core Viewpoint - The article discusses the challenges faced by Applied Materials in its China operations due to the evolving U.S. semiconductor export control policies, highlighting the significant impact on revenue and market dynamics [1]. Group 1: Revenue and Market Impact - Applied Materials' revenue from China has dropped from 45% to 31% due to U.S. export restrictions, with an estimated revenue loss of approximately $400 million for the fiscal year 2025 [4]. - The introduction of the "50% ownership penetration" export control rule in October has further complicated matters, leading to an estimated $110 million in delayed product deliveries and a projected revenue decrease of $600 million for fiscal year 2026 [4]. - The company's fourth-quarter fiscal report indicated a decline in sales to around 25% from the Chinese market, which was misinterpreted by some media as a complete withdrawal from China, prompting a need for clarification [5]. Group 2: Clarification Statement - The clarification statement emphasized that the company continues to provide high-quality products and services to Chinese customers while adhering to applicable laws and regulations, countering claims of a strategic withdrawal [6]. - It explained that the decline in market share is primarily due to external policy changes rather than internal business decisions, indicating that the market size for U.S. companies in China has been reduced by recent trade rule changes [6]. - The statement also projected that there would not be significant changes in market restrictions for 2026, aligning with previous comments from the CEO regarding the absence of new major restrictions affecting shipments to China [6]. Group 3: Business Survival Logic - China remains a crucial market for Applied Materials and other international equipment firms, necessitating a balance between compliance requirements and market interests amid U.S. export controls [8]. - The company aims to mitigate operational disruptions caused by policy fluctuations by clearly stating its position and conveying stable expectations to its stakeholders [8]. - The article suggests that abandoning the Chinese market is not a viable solution for international equipment companies, highlighting the ongoing challenge of balancing policy constraints with market demand [8].