“During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial,” Texas Instruments CEO Rich Templeton said in the release.

KLA Corp. issues first-quarter earnings Wednesday after the closing bell. 

What Happened: Texas Instruments stock fell 5.92% after-hours on Tuesday as a result of the company's weaker-than-anticipated earnings guidance.

KLA Corp., which engages in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries, is expected to post earnings of $6.23 per share, and $2.6 billion in total bookings.

Why It Matters: Forward guidance could be weak, as the Biden administration recently announced new restrictions on semiconductor exports to China, aiming to protect U.S. national security and foreign policy interests.

The new regulations limit American semiconductor technology exports to China and mandate that foreign firms obtain licenses for American tools used in the manufacture of high-end chips exported to China.

KLA Corp. said it stopped supplying several goods and services in accordance with the new regulations.

Unfortunately for KLA, China is its largest geographic market, generating $2.66 billion in sales, or over 30% of the company's overall revenue in its most recent fiscal year ending in June.

Companies like KLA now need to first get a license from the U.S. Department of Commerce in order to supply Chinese chipmakers with advanced manufacturing machinery under the new laws.
Read next: Bullish Interest Returns To Bed Bath & Beyond: Here Are The Levels To Watch

Photo via Shutterstock.