NEW YORK, December 30, 2025, 14:00 ET — Regular session
- KLA shares were down about 0.8% in midday trading, tracking a softer tone across U.S. chip-equipment stocks.
- A Reuters report said China is pressing chipmakers to source at least half of new-fab equipment domestically, adding a fresh policy overhang for foreign tool suppliers.
- Traders are also bracing for U.S. Federal Reserve minutes later Tuesday and watching how quickly export-licensing rules tighten into year-end.
Shares of KLA Corp fell about 0.8% to $1,250.43 on Tuesday, after a Reuters report said China is requiring chipmakers seeking approval for new or expanded plants to show at least half their equipment will be sourced domestically. The stock traded between $1,249.69 and $1,273.20.
The China headline matters for KLA because chipmaking tools are a long-cycle business: policy shifts can change where fabs (chip factories) buy equipment and how quickly foreign suppliers lose share.
For investors, the risk is less about one quarter and more about visibility into 2026 orders. If domestic alternatives gain acceptance faster, U.S. toolmakers face a narrower runway in a key end-market.
Beijing’s new push lands as Washington’s restrictions and licensing rules continue to shape what advanced manufacturing gear can move into China, keeping geopolitics at the center of semiconductor-equipment trading.
Separately, Reuters reported the United States granted an annual license for 2026 allowing Samsung Electronics and SK Hynix to bring chipmaking equipment into their China facilities, according to people familiar with the matter. The report said a “validated end user” waiver — a status that previously eased shipments of some U.S.-made tools to certain factories — is set to expire on Dec. 31, after which American tool shipments would require export licenses. Reuters
Other chip-equipment names traded mixed. Applied Materials fell about 0.9% and Lam Research slid about 0.9%, while ASML rose about 1%.
The broader tape was subdued in holiday-thin trading, with investors also focused on Fed minutes due later Tuesday for signals on the rate path. “The growth rates are going to converge between technology and everything else next year,” said Mark Hackett, chief market strategist at Nationwide, describing the recent pullback in big tech as repositioning rather than panic. Reuters
KLA, based in Milpitas, California, sells process-control tools — inspection and metrology equipment that helps chipmakers measure tiny circuit features and spot defects during manufacturing.
Those tools sit in the critical “yield” loop: when chips get more complex, manufacturers spend to keep more wafers within spec, because small defects can wipe out expensive output.
That makes policy-driven demand swings especially important. Even if leading-edge factories still need foreign tools for some steps, investors are watching whether domestic substitution accelerates in higher-volume, more mature production where local suppliers can compete sooner.
Near term, traders are watching three signposts: any follow-through from China’s procurement push, how aggressively U.S. licensing tightens after the year-end waiver deadline, and whether Fed minutes shift risk appetite into the final sessions of 2025.
The next major company-specific checkpoint is earnings. Nasdaq lists Jan. 29, 2026 as KLA’s estimated next report date; investors will be looking for commentary on China-related demand, export-control exposure and the pace of customer capital spending.
