Shares in ASML and Competitors Surge on Hopes for Softer US Chip Curbs on China

Shares of ASML and its European chip equipment peers saw a notable rise on Thursday after a Bloomberg report suggested that U.S. restrictions on China’s semiconductor industry might be less stringent than initially feared. The news boosted investor sentiment, with ASML's stock climbing 4.3%, while its Dutch counterparts BE Semiconductor (BESI.AS) and ASM International (ASM.AS, ASMIY) gained 5% and 2.9%, respectively. These stocks led the way in the European benchmark STOXX 600 index (^STOXX).

The Bloomberg report, citing anonymous sources, stated that ChangXin Memory Technologies Inc (CXMT), a key Chinese memory chip manufacturer, would not be added to the U.S. trade restrictions list. However, the timing and specifics of any new guidance from the U.S. government remain uncertain.

The U.S. Commerce Department, which is responsible for overseeing these restrictions, is expected to announce new guidelines after the Thanksgiving holiday.

ASML, the world’s largest supplier of semiconductor manufacturing equipment, has not yet commented on the report. During an investor event earlier this month, ASML had forecasted a significant drop in its sales to China, predicting they would fall to just 20% of total sales by 2025, down from nearly 50% over the past six quarters. Other major players in the semiconductor equipment sector, including Applied Materials (AMAT), KLA Corp (KLAC), Lam Research (LRCX), and Tokyo Electron (TOELY, 8035.T), also saw their shares rise following the report.