Exclusive: US orders chip equipment companies to halt some shipments to China’s No. 2 chipmaker Hua Hong

The U.S. Department of Commerce last week ordered multiple chip equipment companies to halt certain tool shipments to China’s second-largest chipmaker, Hua Hong, its latest action to slow the country’s development of advanced chips, according to two people familiar with the matter. 

Why it matters

Top U.S. chip equipment companies Lam Research, Applied Materials and KLA, each of which has significant business supplying China, were among those believed to have received a letter, the sources added. Shares of Lam Research closed down 3.1% on Tuesday, while KLA fell 4.7% and Applied Materials fell 5.8%.