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

Recent reports shared that the United States is considering easing down on the restrictions imposed against China regarding its access to semiconductor technology and AI chips after years of curbing sales to the country. Because of this report, many international semiconductor firms saw their shares rise in the market, especially those who have suffered from the intense US sanctions against the Chinese tech industry.

However, it is important to note that the US restrictions and sanctions against China's access to semiconductors remain, and while they will not be removed by the country, they will be less strict compared to before.

US to Ease Down on Semiconductor Sanctions Against China

The latest report from Bloomberg shared that the United States is deciding on whether to make significant moves to ease down on the semiconductor restrictions imposed against China for several years now. While the US is still on the verge of introducing new rules that will uphold restrictions on sales of essential semiconductor parts and AI memory chips, they may see less strict provisions from Washington.

It was revealed that these new rules from the US government "could stop short" of the previous proposals that focused on the sanctions against China, as the earlier ones were regarded to be stricter.

Additionally, the report revealed that the US is considering fewer suppliers to add to its so-called 'Entity List' that centers on an export blacklist to the Chinese consumer tech giant, Huawei.

That being said, Bloomberg shared that the US Commerce Department and its Bureau of Industry did not respond when asked for their comments regarding the matter.

Stocks of Global Chip Suppliers Rise Amidst New Reports

According to CNBC, the wake of Bloomberg's recent report spelled a celebratory time for global chip suppliers as they saw a surge in their shares on the market. The likes of ASML saw a 3.6 percent increase in its trading over in Europe, while Tokyo Electron enjoyed a 6 percent rise in its home country of Japan.

The US Sanctions Against China on Chip Access

The 'chip war' between the United States and China is not yet over, it has already dragged on for many years and significantly affected several companies like Huawei, in getting access to its processor needs for its smartphones and more. However, NVIDIA also faced the American wrath against their China exports that offer a stripped-down version of its GPU to the Chinese market.

Earlier this year, Huawei and the supplier of its latest 7nm chipset for its latest smartphones were embroiled in a controversy as the US Department of Commerce suspected that this new processor used American technology to complete its development. Huawei is best known as one of the top companies that is prohibited from using US chip designs, and this finding was a shocking revelation behind the enforcement of the sanction.

Most recently, one of the biggest global chip suppliers, TSMC, recently faced a probe from the US Commerce Department after it was suspected of helping Huawei with its AI chip needs, with their tech later discovered from the Chinese processor. China has since made ramping efforts toward developing their chipsets, but the latest reports claimed that the US may be toning the restrictions down, prompting global chip companies' shares to rise.