On November 20, 2025, Applied Materials, a behemoth in the U.S. semiconductor equipment sector, released a clarification statement to counter inaccurate media narratives concerning its business operations in China. The statement underscored the company's unwavering commitment to delivering premium products and exceptional services to its Chinese clientele, all while strictly adhering to pertinent laws and regulations.

Over the past 12 months, as a result of alterations in U.S. trade regulations, the market landscape for U.S. firms operating in China has contracted. Nevertheless, Applied Materials does not foresee any substantial shifts in market restrictions for the year 2026.

According to the company's financial report for the third quarter of fiscal 2025, revenue generated from the China region soared to $2.548 billion, representing 35% of its total revenue. This figure solidified China's position as the company's largest regional market on a global scale. However, influenced by external policy changes, revenue from the China region experienced a downturn, plummeting to $1.96 billion in the fourth quarter. This marks an 8.1% year-on-year decrease.

The company's CEO remarked that in the midst of a constantly evolving macroeconomic and policy climate, short-term uncertainties have surged, which has had a repercussion on its business in China. In an effort to navigate through this volatility, the company unveiled a plan to reduce its global workforce by 4%. Moreover, it anticipates that fiscal 2026 revenue will take a hit, declining by $600 million due to the impact of external environmental factors.