Lam Research Shares Plummet 4.3% Amid Tightened US Restrictions on Semiconductor Equipment Sales to China

Lam Research shares fell 4.3% after the US government tightened restrictions on semiconductor equipment exports to China, impacting US-based equipment makers like Lam Research, KLA Corp, and Applied Materials. The stock market's volatility and previous price movements suggest the market considers this news meaningful but not fundamental to the business. Lam Research has risen 37.6% this year and is trading near its 52-week high of $107.38.

Lam Research Corporation (NASDAQ: LRCX) shares fell 4.3% in the afternoon session on July 2, 2025, following the U.S. government's announcement of tightened restrictions on the use of American semiconductor manufacturing equipment in China. The U.S. Commerce Department revoked authorizations that had allowed chipmakers Samsung and SK Hynix to receive U.S. equipment for their Chinese facilities. Under the new rules, these companies will need to obtain specific licenses for such purchases [2].

This policy change is expected to reduce sales for American semiconductor equipment makers like Lam Research, KLA Corp, and Applied Materials. The stock's drop also came amid a wider sell-off in the technology sector, as disappointing guidance from other tech firms like Dell and weak data center revenue from Marvell Technology contributed to negative market sentiment [3].

The market's volatility and previous price movements suggest the news is considered meaningful but not fundamental to the business. Lam Research has risen 37.6% this year and is trading near its 52-week high of $107.38 [1].

Reference List
1. https://www.marketbeat.com/instant-alerts/filing-epoch-investment-partners-inc-increases-stock-holdings-in-lam-research-corporation-lrcx-2025-08-26/
2. https://stocktwits.com/news-articles/markets/equity/us-revokes-intel-samsung-sk-hynix-waivers-on-china-chip-equipment/chtTKpgRdNh
3. https://finance.yahoo.com/news/why-lam-research-lrcx-stock-193050903.html