shares ASML The company’s shares rose 10% on Wednesday after Reuters reported that the company could be exempted from expanded export restrictions on Chinese chip manufacturing equipment.
Reuters Reports on Wednesday said the United States was considering expanding so-called foreign direct product rules, but that allies that export critical chipmaking equipment – including Japan, the Netherlands and South Korea – would be excluded.
Reuters reported that exports to China from countries such as Israel, Taiwan, Singapore and Malaysia will be affected by US regulations. Taiwan is British Semiconductorthe world’s largest chip manufacturing plant.
This is related to Burundi Reports earlier this month suggested companies from those countries would be included in the expansion of the rules.
Foreign direct product legislation states that any company that uses even a small portion of U.S. technology to produce semiconductor-related products may not be able to export those products to China. The U.S. rule could affect foreign companies, which often rely on U.S. technology.
Netherlands-based ASML — critical semiconductor Shares of the company, which makes the machines needed to make some of the world’s most advanced wafers, were up about 7% as of 3.59 a.m. ET, according to a Reuters report.
shares Tokyo ElectronicsAfter the report was released, Japanese semiconductor equipment manufacturers also closed up more than 7% on Thursday.
Shares of both companies fell after Bloomberg released preliminary reports earlier this month.
Semiconductors are at the center of the U.S.-China technology trade war.
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