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US Reportedly Easing Down Sanctions Against China, Prompting Shares to Rise Among Global Suppliers

Nov 28, 2024 - techtimes.com
The United States is reportedly considering easing restrictions on China's access to semiconductor technology and AI chips, after years of curbing sales. This has led to a rise in shares for many international semiconductor firms, particularly those affected by US sanctions against the Chinese tech industry. However, while restrictions will be less strict, they will not be completely removed.

The news has resulted in a surge in shares for global chip suppliers, with ASML seeing a 3.6% increase in Europe and Tokyo Electron a 6% rise in Japan. Despite this, the 'chip war' between the US and China continues, with companies like Huawei and NVIDIA facing difficulties due to US sanctions. The US Commerce Department has also recently probed TSMC, a major global chip supplier, over suspicions of assisting Huawei with its AI chip needs.

Key takeaways:

  • The United States is considering easing restrictions on China's access to semiconductor technology and AI chips, which has led to a rise in shares for many international semiconductor firms.
  • The new rules from the US government could be less strict than previous proposals and may include fewer suppliers on its 'Entity List' for export blacklisting, particularly targeting Huawei.
  • Global chip suppliers, such as ASML and Tokyo Electron, have seen a surge in their shares following the recent report.
  • The 'chip war' between the United States and China has significantly affected companies like Huawei and NVIDIA, with the former being prohibited from using US chip designs and the latter facing American wrath against their China exports.
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