ASML and peers climb on hopes for less severe US curbs on China chips
5:19 am Thursday, November 28th, 2024
(Reuters) -Shares of ASML and its peers in the European computer chip equipment sector climbed on Thursday after Bloomberg News reported that looming U.S. restrictions on the Chinese semiconductor industry may be less severe than expected.
Shares in ASML were up 4.3% by 0809 GMT, with Dutch rivals BE Semiconductor and ASM International rising by 5% and 2.9% respectively, among top performers on the European benchmark STOXX 600 index.
The Bloomberg report, citing unnamed sources, said that major Chinese memory chip manufacturer ChangXin Memory Technologies Inc (CXMT) would not be added to U.S. trade restrictions lists, adding that the timing and contents of the decision are not certain.
The U.S. Commerce Department oversees U.S. restrictions on China exports and is expected to issue new guidance after the Thanksgiving holiday.
ASML, the largest supplier of semiconductor-making equipment, declined to comment. At an investor day two weeks ago the company said it expects sales of its tools to China to drop to 20% of total sales in 2025 from nearly 50% over the previous six quarters.
Other top computer equipment suppliers include U.S. companies Applied Materials <AMAT.O)>, KLA Corp, Lam Research and Tokyo Electron.
(Reporting by Nathan Vifflin in Gdansk and Toby Sterling in AmsterdamEditing by Milla Nissi and David Goodman)
