In this photo illustration taken on January 4, 2024 in Brussels, Belgium, the ASML icon appears on a circuit board alongside the flags of the United States and China.
Jonathan Ra | Null Photo | Getty Images
Shares of major global semiconductor equipment companies soared on Thursday after reports that the United States is considering sanctions against China’s chip industry, falling short of previous proposals.
ASML It rose about 2.9% in European afternoon trading. Tokyo Electron In its trading partner Japan, the stock closed 6.7% higher.
bloomberg The U.S. government is considering further measures to restrict sales of semiconductor equipment and AI memory chips to China, according to a report on Wednesday, but the new rules may be lower than previous proposals that were seen as tougher. It is said that there is.
The U.S. Department of Commerce’s Bureau of Industry declined to comment on the Bloomberg report.
The United States is currently considering adding suppliers to Chinese technology giant Huawei to its export blacklist, known as the Entity List. One major Chinese company that will not be added is Changshin Memory Technologies, a memory company and potential rival to companies such as SK Hynix and Samsung, the report said.
Jefferies analysts said ASML had previously guided for a 30% decline in revenue from China next year. The company’s exclusion could mean ASML’s sales in China “will decline less than expected next year,” Jefferies said Thursday.
ASML is a target of the US-China technology race for semiconductors because of the Dutch company’s important position in the semiconductor supply chain.
ASML builds the machinery chipmakers need to produce cutting-edge semiconductors. These machines have not yet been exported to China due to various export regulations. More recently, the Dutch and U.S. governments have imposed restrictions that have made it more difficult for ASML to export some of its less advanced machinery to China.
The company sells its machines to “fabs,” or factories in places like Taiwan, that actually make the chips. TSMC similarly SMIC In China. Rules that hurt demand or directly target semiconductor manufacturers will have a negative impact on ASML.
A Bloomberg report suggested that additional sanctions under consideration would target Chinese companies that make semiconductor manufacturing equipment, rather than the factories that actually make the chips. This is also a plus for ASML and other semiconductor equipment companies that sell to fabs.
