Story perspectives

U.S. Halts Chip Tools to China; Lam, KLA Shares Drop

4/29/2026

Summary

Story summary

The U.S. Commerce Department sent “is-informed” letters halting equipment shipments to Hua Hong’s Fab 6 in Shanghai and a second plant under construction.
Lam Research, Applied Materials and KLA must stop sending tools that could enable 7-nanometer chip production.
Shares of Lam Research and KLA fell 3.1% and 4.7%, respectively, after the news.
Chris McGuire said the step was overdue and should cover all U.S. toolmakers, including overseas subsidiaries.

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Story summary

The U.S. Commerce Department sent “is-informed” letters halting equipment shipments to Hua Hong’s Fab 6 in Shanghai and a second plant under construction.
Lam Research, Applied Materials and KLA must stop sending tools that could enable 7-nanometer chip production.
Shares of Lam Research and KLA fell 3.1% and 4.7%, respectively, after the news.
Chris McGuire said the step was overdue and should cover all U.S. toolmakers, including overseas subsidiaries.