KLA to cease sales to China to comply with U.S. export rules - source
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KLA Corp (NASDAQ:KLAC) will stop sales to China-based customers from Wednesday as it works to comply with the new export rules from the U.S. slated to curb the use of advanced chips in Chinese military applications.
On Friday, the Biden Administration placed additional controls on China's semiconductor industry, requiring companies to obtain a license from the Commerce Department to export semiconductors and chip making equipment to Chinese companies. 
Citing a source familiar with the matter, Reuters reported today that KLA (KLAC) shall stop sales and service to "advanced fabs" in China for technology of NAND chips with 128 layers or more, and DRAM chips 18nm and below, and advanced logic chips. 
The U.S. chip toolmaker would also cease supply to China-based chip facilities owned by Intel (INTC) and South Korea's SK Hynix, the source added.
KLA (KLAC) did not immediately respond to Reuters' request for comment
China represents KLA's (KLAC) largest geographic market, bringing in nearly 30% of its total revenue in the last fiscal year that ended in June, according to the company's financial filings.

Shares in KLAC fell nearly 5% on Monday and continue to be down ~3% premarket on Tuesday