Chip equipment stocks tumble on China restrictions

U.S. chip equipment makers Lam Research, Applied Materials, and KLA saw shares drop 6.2%, 5.1%, and 4.0% respectively on Tuesday.
The decline follows a report the U.S. Department of Commerce ordered a halt to tool shipments to China's second‑largest chipmaker Hua Hong.
The restrictions could cost U.S. chip equipment firms billions in sales, especially for plants under construction or retooling for advanced chips.
Letters were sent last week to several companies informing them of new restrictions on tools and materials destined for Hua Hong facilities.