ASML Rises On Hope It Will Be Spared From U.S. Export Restrictions

Shares in ASML, the largest maker of equipment used to manufacture computer chips, have jumped following a Reuters report that signaled it may be spared from many of the new US restrictions being considered on exports to China, Toby Sterling reported for Reuters.

The US may exclude allies, including the Netherlands, where ASML is based, from new restrictions on equipment sales to half a dozen Chinese chipmaking plants. I Photo: ASML Facebook

The report said the US would exclude allies, including the Netherlands, where ASML is based, from new restrictions on equipment sales to half a dozen Chinese chipmaking plants.

ASML shares were up 5.6% at €855.20 at 09:55 GMT. "Today's news definitely alleviates the market's concerns as ASML had nearly half of its sales from China in the first half of 2024," said Mizuho Securities analyst Kevin Wang.

The share price surge in Europe's biggest tech firm, with a market capitalization of more than 300 billion euros ($325 billion), is the latest example of trade policy and political moves affecting stocks rather than earnings or business plans.

Wednesday's rise reverses part of a large drop on July 17 following a Bloomberg report that the US was considering unilateral action to restrict equipment exports by allies, including the Netherlands.