© Reuters. FILE PHOTO: A smartphone with a displayed Applied Materials logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
By Tiyashi Datta and Stephen Nellis
(Reuters) – Semiconductor manufacturing tools maker Applied Materials Inc (NASDAQ:) forecast third-quarter revenue above market estimates on Thursday, as governments around the world pour funding into chip factories.
Companies such as KLA Corp, Applied Materials and Lam Research Corp (NASDAQ:) are benefiting from subsidies in the United States, Europe and Japan, as well as a rush by China to stock up on tools for making chips with legacy technologies after U.S. export control rules blocked sales of more advanced chipmaking technologies to the country.
Chief Executive Officer Gary E. Dickerson said the company believes about $400 billion in government funding is supporting the chip industry.
“There’s a clear trend towards regionalization of supply chains, as countries seek to build resilient local capacity to support industry verticals that are central to their economies,” Dickerson said on a conference call with investors.
Applied Materials forecast third-quarter revenue of $6.15 billion, plus or minus $400 million, compared with analysts’ estimates of $6.02 billion, according to Refinitiv IBES data.
The company posted second-quarter revenue of $6.63 billion, compared with estimates of $6.38 billion.
On an adjusted basis, the company earned $2 per share in the second quarter, beating estimates of $1.84 according to Refinitiv IBES data.
This story originally appeared on Investing
