Saurabh Arya

Saurabh Arya inquired about the sequential decline in foundry/logic revenue to 59% of sales, asking about the causes, the impact of China restrictions, and whether this represents a one-quarter lumpiness or a trend into the first half of next year.

Answer

CFO Bren Higgins explained that the decline is due to a reduction in China revenue, which was elevated in the September quarter, and an uptick in leading-edge and DRAM. He clarified that the immediate impact of new export controls on the December quarter is immaterial due to slot reallocations, but estimates a $300-$350 million revenue impact between now and the end of 2026.

Saurabh Arya asked about the sequential decline in foundry/logic revenue to 59% of sales, inquiring about the causes, the impact of China restrictions, and whether this represents a one-quarter lumpiness or a longer-term trend into the first half of next year.

Answer

CFO Bren Higgins explained that the decline was due to an uptick in leading-edge foundry/logic being offset by a reduction in China revenue, which was elevated in the September quarter. He noted that China's share was expected to normalize to around 30% for the full year. The impact of recent export controls on the December quarter was deemed immaterial due to slot reallocations, but a $300-$350 million revenue impact is expected between now and the end of 2026.