Core Insights - The U.S. government has issued an annual license to Taiwan Semiconductor Manufacturing Company (TSMC) to import chip manufacturing equipment to its facilities located in Nanjing, China [1] Company Summary - Taiwan Semiconductor Manufacturing Company (TSMC) has received approval from the U.S. government for an annual license [1] - The license allows TSMC to bring in essential chip manufacturing equipment to enhance its operations in Nanjing, China [1]

By Hyunjoo Jin SEOUL, Dec 30 (Reuters) - The U.S. government has granted an annual licence to Samsung Electronics and SK Hynix ​to bring in chip manufacturing equipment to their facilities ‌in China for 2026, two people familiar with the matter said on Tuesday. The ‌approval is a temporary relief for the South Korean firms and follows a U.S. decision earlier this year to revoke licence waivers given to some tech companies. One of the sources said that Washington ⁠introduced the annual approval ‌system ...

Core Insights - Applied Materials expects a revenue hit of $710 million due to new restrictions on exports to China, which is a significant pressure on its shares [1][7] - The new rule from the Commerce Department's Bureau of Industry and Security, effective September 29, further restricts the company's ability to export certain products and services to specific Chinese customers without a license [2][4] - The company anticipates a reduction of $110 million in net revenue for the fourth quarter and around $600 million for fiscal 2026 as a result of these restrictions [2][3] Company Performance - Applied Materials shares have increased by nearly 40% in 2025, driven by the AI boom and rising demand for chips [1][3] - Despite the overall increase, shares were down approximately 3% in premarket trading following the announcement of the new export restrictions [5] Market Context - China represents over a third of Applied Materials' total revenue, making it the largest market for the company [4] - The new licensing requirements mean that U.S. companies will need licenses to export to entities that are 50% or more owned by companies on the entity list, closing a significant loophole [4][7]

Group 1 - KLA's stock rose nearly 6% due to a significant deal in the chip industry, outperforming the S&P 500's 0.7% increase [1] - Nvidia announced a $5 billion investment in Intel, marking a major collaboration between the two companies [2] - The investment from Nvidia, along with an $8.9 billion federal investment and a $2 billion investment from SoftBank, aims to revitalize Intel and strengthen the domestic chipmaking sector [3] Group 2 - The influx of capital into Intel is expected to positively impact various chip stocks, including KLA, which manufactures equipment used in chip production [4] - Although KLA is not directly involved in the recent transactions, it stands to benefit from the overall positive sentiment in the chip production chain [5] - The Motley Fool Stock Advisor has identified other stocks as better investment opportunities compared to KLA, despite the current enthusiasm for chip stocks [6][7]