- author, Joao da Silva
- stock, Business Correspondent
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Tech stocks around the world have fallen on fears about the global computer chip industry.
The sales came after reports that the Biden administration may be set to tighten restrictions on semiconductor equipment exports to China.
Comments by former US President Donald Trump that Taiwan, the biggest producer of chips, should pay for its own security added to the concern.
In the US, the tech-heavy Nasdaq index closed down 2.7% on Wednesday, while chip stocks in Europe and Asia also fell.
“Regardless of the election results … I think we’re going to see the U.S. increase some restrictions,” said Bob O’Donnell, chief analyst at Technolysis Research.
“The big question is how far they will take it.”
In Asia, chipmaker TSMC lost 2.4% on Thursday, while semiconductor equipment maker Tokyo Electron fell about 8.8%.
AMD lost more than 10% after Nvidia closed 6.6% lower in New York on Wednesday.
In Europe, shares of ASML, a maker of chip-making machines, fell nearly 11%.
The drop came after Bloomberg News reported on Wednesday that the US government was preparing to impose even tighter restrictions on semiconductor makers in China if companies such as ASML and Tokyo Electron continue to access their advanced chip technology to the country.
The US Department of Commerce, ASML and Tokyo Electron declined to comment when contacted by BBC News.
The Biden administration has previously taken steps to limit China’s access to advanced chip technology.
In October, China banned exports of advanced semiconductors used in artificial intelligence (AI) technology.
Mr Trump’s comments on Taiwan also hinted at a potential disruption to global chip supply.
Taiwan produces most of the world’s most advanced chips.
“Investors always react to any comments from the U.S., but despite these comments, the semiconductor industry’s long-term business trend is clearly rising,” said Marco Mesker, executive vice president of memory chip technology company Neumonta.
