The Dutch company ASML is leading a semiconductor rally on the stock exchange after a report that the company will be exempt from the US export restrictions to China.
President Joe Biden's government plans to present new rules next month to expand the US authority to stop exports of equipment using American technology to Chinese semiconductor manufacturers, according to Reuters, citing sources. However, deliveries from, among others, the Netherlands, Japan, and South Korea will be exempt, according to the information.
This means that companies like ASML and Tokyo Electron – both of which build machines for manufacturing microchips – can continue to deliver to China. The companies' shares have risen by over seven percent in Wednesday's stock trading.
The US aim is to slow down China's technological progress in areas such as artificial intelligence and quantum computing.
In recent years, the US and China have introduced various trade restrictions against each other, focused on new and advanced technology, citing national security.
