Global technology stocks fell on concerns about the global computer chip industry.
The sell-off was triggered by reports that the Biden administration may further tighten restrictions on China’s semiconductor equipment exports.
Former U.S. President Donald Trump added to concerns that Taiwan, the largest chip producer, should pay for its own defense.
In the United States, the tech-heavy Nasdaq closed down 2.7%, while chip stocks in Europe and Asia also tumbled.
In Asia, chip manufacturing giant TSMC’s shares fell more than 3% in early trading on Thursday, while semiconductor equipment maker Tokyo Electron fell about 9.5%.
Nvidia closed down 6.6% in New York on Wednesday, while AMD fell more than 10%.
In Europe, shares of chipmaker ASML fell nearly 11%.
Bloomberg News reported on Wednesday that the U.S. government is preparing to impose the strictest restrictions yet on China’s semiconductor manufacturing equipment if companies such as ASML and Tokyo Electron continue to provide China with their advanced chip technology.
ASML declined to comment when contacted by the BBC. Tokyo Electron did not immediately respond to a request for comment.
The BBC also requested a statement from the U.S. Department of Commerce.
The Biden administration has previously taken steps to restrict China’s access to advanced chip technology.
In October, it restricted exports to China of advanced semiconductors used in artificial intelligence (AI) technology.
President Donald Trump’s comments about Taiwan also hinted at possible disruptions to global chip supplies.
Most of the world’s advanced chips are produced in Taiwan.
“Whatever the outcome of the election … I think we’re going to see some increased restrictions in the U.S.,” said Bob O’Donnell, principal analyst at TECHnaanalysis Research.
“How far they can go is the big question, though.”
