Global Semiconductor Firms Surge as U.S. Considers Less Severe Sanctions on China's Chip Industry

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Semiconductor,ASML,Tokyo Electron

Leading semiconductor equipment companies saw a surge in their shares after a report suggesting less severe sanctions on China's chip industry by the U.S. ASML and Tokyo Electron saw notable increases in their stock prices.

The shares of leading global semiconductor equipment companies increased on Thursday following a report that the U.S. is contemplating sanctions against China's chip industry, though these would be less stringent than previously proposed. ASML saw an increase of around 4.3% in early trading in Europe, while Tokyo Electron gained over 6% in Japan.

Bloomberg reported that Washington is considering new measures to limit sales of semiconductor equipment and AI memory chips to China, but these new rules would be less severe than earlier proposals. The U.S. Commerce Department's Bureau of Industry has not yet responded to a request for comment on the Bloomberg report. A key Chinese firm, ChangXin Memory Technologies, is not expected to be added to an export blacklist known as the Entity List. ASML had previously projected a 30% decline in revenue from China next year; however, the exclusion of ChangXin Memory Technologies could imply that ASML's revenue decline in China would be less than anticipated

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