BIS Extends Affiliates Rule Stay as Chip Results Diverge

The read

BIS extended its suspension of the Affiliates Rule to Jan 10, 2027, so the rule will not return on Nov 10. Company results split: Microchip grew sales 42% and said lead times are lengthening, while Qualcomm's handset revenue fell 26% and Himax guided its fourth quarter down 22% to 26% on a sudden drop in car display chip orders. Bloomberg reported that Micron paused a planned $4.5 billion Taiwan memory plant after a labor dispute. Chip stocks fell sharply on Nov 5, with the iShares Semiconductor ETF down more than 12%, per CNBC as cited by StockTitan.

What changed

Policy and trade

BIS Affiliates Rule (per Baker McKenzie, citing the BIS rule): BIS released a final rule on Nov 5 extending its suspension of the Affiliates Rule through Jan 10, 2027. The previous stay ran until Nov 9, 2026 (Federal Register 2025-19846). The new rule is scheduled for Federal Register publication on Nov 9 as public inspection document 2026-22793. BIS made no other changes, did not address public comments and said the rule "remains suspended rather than withdrawn." The new end date matches the US-China trade arrangement that Treasury Secretary Scott Bessent said in September would run through Jan 10, 2027. Baker McKenzie (Nov 5)

Memory

Micron (reported by Bloomberg; Reuters could not verify; Micron had not commented): Bloomberg reported, citing people familiar with the matter, that Micron paused work on a planned $4.5 billion memory chip plant in Taiwan after an extended labor dispute. Reuters, which carried the report, said it could not immediately verify it, and Micron did not immediately respond to a request for comment. Micron shares closed down 17.46% on Nov 5 during a broad chip selloff (StockTitan). Reuters via Investing.com (Nov 5)

Analog and microcontrollers

Microchip Technology: Fiscal second-quarter net sales were $1.622 billion, up 42.2% from $1.140 billion and up 9.2% from the prior quarter. Microchip guided the December quarter to $1.573 billion to $1.638 billion, a midpoint 1% below the prior quarter. Book-to-bill was "well above one." Microchip said most factory expansion actions are paused and fiscal 2027 capital spending will be about $100 million. It also said lead times are lengthening across the supply chain and that it is working to expand capacity and secure more wafer allocation. Guidance excludes restructuring items, including the planned sale of its Fab 2 in Tempe, Arizona. Microchip 8-K, Ex. 99.1 (Nov 5)

RF and mobile

Qualcomm (released Nov 4 after the close; held from the Nov 4 issue until the release could be read): Fiscal fourth-quarter revenue was $10.32 billion, down 8% from a year earlier. Chip revenue (QCT) was $9.02 billion: handsets $5.14 billion, down 26%; automotive $1.99 billion, up 89%; IoT $1.89 billion, up 4%. Licensing revenue (QTL) was $1.30 billion, down 7%. GAAP net income was $1.25 billion, against a net loss of $3.12 billion a year earlier. Fiscal 2026 revenue was $43.12 billion. Qualcomm guided the December quarter to $10.4 billion to $11.2 billion. Shares closed down 9.49% on Nov 5 (StockTitan). Qualcomm release (Nov 4)

Automotive and display

Himax Technologies: Third-quarter revenue was $246.8 million, up 8.5% from the prior quarter. Himax guided fourth-quarter revenue down 22% to 26% from the third quarter, mainly on a sudden drop in automotive display driver orders it attributed to "abrupt, short-term order adjustments by certain customers." It said the affected customers are panel makers exposed to Chinese automakers' export programs, which recently cut fourth-quarter forecasts. Himax said data center AI demand is lifting demand for legacy-node chips such as photonic and power management ICs, and it expects legacy-node capacity to tighten further in 2027. Shares fell 26.44% on Nov 5 (StockTitan). Himax release (Nov 5)

Equipment

Veeco Instruments (released Nov 4; missed in the Nov 4 issue): Third-quarter revenue was $209.4 million, up 26% from $165.9 million. Veeco guided fourth-quarter revenue to $230 million to $260 million. CEO Bill Miller cited "unprecedented customer engagement and order activity" tied to AI infrastructure and said Veeco is well positioned to exceed $1 billion in revenue for 2027. The release refers to the pending merger with Axcelis, which still needs regulatory approval in China among other conditions. Veeco 8-K, Ex. 99.1 (Nov 4)

M&A and restructuring

Marvell and Lumentum (update to the Nov 3 issue): The companies' Nov 2 joint announcement, as reproduced by Light Reading, gives an implied enterprise value of $115 billion, about $1,132 per Lumentum share and a premium of about 23.9% to Lumentum's unaffected Oct 28 close, at 4.500 Marvell shares per Lumentum share. The Nov 3 issue cited only the "approximately $100 billion" figure from a Lumentum employee FAQ, which did not state its basis. Light Reading (Nov 2)

Research

Washington University in St. Louis: Researchers grew single-crystal thin films of lanthanum-doped hafnia and found the material can be stabilized in an antiferroelectric structure and switched electrically, down to the 2D limit. Hafnia already forms the insulating layer in silicon transistors, and the team says the results could support denser memory and high-energy-density capacitors without new components. The Science paper was published Sept 24; WashU announced it Nov 5. WashU Source (Nov 5; paper Sept 24)

Watch next

• Nov 9: The BIS rule extending the Affiliates Rule suspension is scheduled for Federal Register publication. (Baker McKenzie)
• Nov 10: China's one-year pause on its October 2025 rare earth export controls is set to expire. (Mining Technology via Yahoo Finance)
• Jan 10, 2027: New end date for the Affiliates Rule suspension. (Baker McKenzie)