Amidst a growing economic slowdown and worries of a looming recession, the U.S. recently announced new export curbs on advanced chips and chip manufacturing equipment to China. That's thrown yet another wrench in the gears of the semiconductor industry. As measured by the iShares Semiconductor ETF, chip stocks are down 45% so far in 2022, and they're down nearly 10% since the China chip sales restrictions were formally announced.

Chip manufacturing equipment companies could get hit especially hard, since some of them have been recording up to a third of their revenue from China. One of the top players here, Applied Materials (NASDAQ: AMAT), just provided a preliminary financial estimate that includes a notable impact from complying with the new rules. Here's what investors need to know.

Applied Materials (AMAT) is wrapping up its fiscal 2022 at the end of October. With just a couple weeks to go, the company cut right to the chase and said the new U.S. chip and equipment bans will reduce its fourth-quarter revenue by $400 million, plus or minus $150 million. 

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Source Fool.com