Tech stocks have fallen all over the world due to concerns about the worldwide computer chip market.
Following a statement that the Biden administration might be set to even tighten limitations on the export of transistor technology to China, the selloff occurred.
The concerns were heightened by Donald Trump’s comments that Taiwan, the largest manufacturer of cards, should foot the bill for its own defense.
In the US, the tech-heavy Nasdaq index closed 2.7 % lower, while chip companies have also tumbled in Europe and Asia.
In Asia, semiconductor equipment manufacturer Tokyo Electron was down by about 9.5 %, while chip manufacturer TSMC was trading more than 3 % lower in morning trade on Thursday.
That came after Nvidia closed 6.6 % lower in New York on Wednesday, while AMD lost more than 10 %.
In Europe, stocks in ASML, which makes device making systems, tumbled by about 11 %.
The declines come after Bloomberg News reported on Wednesday that the US federal is preparing to establish its tightest restrictions on semiconductor manufacturing equipment on China if businesses like ASML and Tokyo Electron continue to grant the nation access to their superior device technology.
When the BBC contacted ASML, the organization declined to comment. A post demand was not immediately addressed by Tokyo Electron.
The BBC has also contacted the US Commerce Department for a declaration.
China’s access to advanced device engineering has previously been restricted by the Biden management.
In October, it restricted exports to China of advanced semiconductors used in artificial intelligence ( AI ) technology.
Mr. Trump’s comment on Taiwan even made hints about potential disruption of global chip materials.
Taiwan produces most of the world’s developed cards.
” Regardless of the outcome of the votes… I think we will see the US enhance some of the limits” said Bob O’Donnell, general scientist at TECHnalysis Research.
” How much they will get it, though, is the great problem”.