Chip Suppliers Shares Jump Amid U.S. Sanctions on Chinese Chip Industry
On Thursday, 28th November 2024, it was reported that the U.S. government is planning to put sanctions on the Chinese chip industry. It was also said that these new rules would restrict the sale of Chinese imports and could be easier in comparison to previous stricter rules.
Chip Suppliers’ Shares Jump
The implication of the sanctions led to the jump in the share prices of chips suppliers and semiconductors firms, as per CNBC. ASML stocks saw an increase of 3.6%, while ASMI and Dutch Electron shares were high by 2.9% to 5% in the European stock exchange, whereas Tokyo Electrons rose by more than 6% in Japan. These developments show the impact of U.S. chip curbs on global markets.
Sanctions and AI Memory Chips
According to Yahoo Finance, the new rules could be implemented as soon as next week. These measures are a result of months of negotiations with the companies from Japan and the Netherlands and a lot of lobbying from American manufacturers.
One of the first drafts of these sanctions also had a list of companies that would be included in the restricted list. These U.S. chip curbs will also impact six companies that were suppliers to Huawei Technologies Co., which recently launched the smartphone Mate 70. One of the major companies that won’t be added to this list is ChangXin Memory Technologies, a rival to SK Hynix and Samsung.
Although, as per the new plan, only some of the suppliers of Huawei would be included in the list, and ChangXin Memory Technologies has been omitted.
With the new rules in place, two chip factories owned by SMIC, the chip manufacturing partner of Huawei, will be a part of this list. Apart from this, there will also be 100 companies added to this list.
In the summer of 2024, the U.S. government attempted to push Japan and the Netherlands to curb transactions with Chinese manufacturers using FDPR. However, both nations expressed concerns over the extreme impact on their companies. With Trump elected as president, foreign governments are reportedly less inclined to negotiate with the Biden administration.
