Chip Stocks Rise On Reports Of Lighter China Restrictions

(MENAFN- Baystreet) Shares of microchip and semiconductor companies are rising on reports that the U.S. is considering lighter restrictions on sales to China.
Media reports say that the U.S. government is considering further measures to restrict sales of semiconductor equipment and artificial intelligence (A.I.) chips to China, but the new rules could be less stringent than earlier proposals.
The U.S. is reportedly considering adding fewer China chip suppliers to an export blacklist known as the“Entity List.”
Analysts say this could mean that western chipmaker's sales in China decline less than previously expected, which is a positive development.
It is especially good news for companies such as the Netherlands ASML (ASML), which is critical to the global microchip supply chain.
ASML makes a machine that chipmakers need to manufacture advanced semiconductors. To date, those machines have not been sent to China because of export controls.
Media reports say that new U.S. sanctions under consideration would target Chinese firms making semiconductor manufacturing equipment, rather than factories that make the chips.
The stock of ASML has declined 7% this year and currently trades at $670.48 U.S. per share.

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