Following reports of easing sanctions by China, chip stocks are rising.

Nvidia Corp (NASDAQ: NVDA) saw its stock price rise on Friday. This is because the US government is planning to announce further sanctions on the export of semiconductor equipment and AI memory chips to China, which are expected to be less strict than previous sanctions.
Furthermore, in response to protests from Lam Research Corporation (NASDAQ: LRCX), Applied Materials Inc. (NASDAQ: AMAT), and KLA Corporation (NASDAQ: KLAC), US sanctions are shifting focus towards Chinese companies manufacturing semiconductor manufacturing equipment instead of manufacturing facilities. This move allows US companies like ASML Holding N.V. (NASDAQ: ASML) and Tokyo Electron Ltd. Unsponsored ADR (OTC: TOELY) to maintain an advantage over international rivals with the US sanctions on China. However, ASML and Tokyo Electron Ltd. do not fully agree with the US sanctions against China.

According to Bloomberg, citing sources familiar with the matter, the US may announce new semiconductor sanctions by next week.
New regulations will be enacted after months of negotiations with the US government, allied countries like Japan and the Netherlands, and US chip manufacturers. US chip companies including Nvidia and competitors had previously requested the government to ease the sanctions on exporting to China, a major semiconductor market.
Therefore, the US is expected to reduce the frequency of restrictions imposed on suppliers to Huawei Technologies and is predicted to limit chip factories supplying Semiconductor Manufacturing International Corporation, a partner of Huawei, to only two.

However, the new regulations will impact high-bandwidth memory chip companies like Samsung Electronics Co. Ltd. (OTC: SSNLF), SK Hynix Inc., and Micron Technology Inc. (NASDAQ: MU).
Due to the semiconductor supply chain disruptions caused by the 2020 pandemic in China, countries around the world have started to integrate their semiconductor bases and reduce dependence on China. While advocating for similar sanctions on China to be imposed by allied countries like the Netherlands and Japan, the US and other nations have started offering incentives to contract chipmakers like Taiwan Semiconductor Manufacturing Co., Ltd. (NYSE: TSM) and Intel Corporation (NASDAQ: INTC) to manufacture advanced AI chips at US facilities.