Shares of major Asian computer chipmakers fell after the United States announced tough new measures to limit technology sales to China.
The United States said it would ban American firms from selling certain chips used in supercomputers and artificial intelligence to Chinese firms.
The rules announced Friday also target sales by non-US companies that use US equipment.
Technology firms are also seeing demand decline as the global economy slows.
On Tuesday, shares of Taiwanese chipmaker TSMC fell more than 8 percent, Japan’s Tokyo Electron lost 5.5 percent and South Korea’s Samsung Electronics lost 1.4 percent.
Stock markets in Taiwan, Japan and South Korea reopened on Monday after being closed for a public holiday.
Elsewhere in Asia, shares of China’s largest chipmaker SMIC fell 4% in Hong Kong.
The regulations require US companies to apply for licenses to supply equipment to Chinese chipmakers that can produce more advanced chips.
Washington said the rules were aimed at curbing Chinese military and technological progress.
The measures, some of which take effect immediately, mark one of the biggest shifts in U.S. policy toward exporting technology to China in decades.
In the US on Monday, the technology-rich Nasdaq index closed at its lowest level since July 2020 as shares of chipmakers Intel, Nvidia, Qualcomm and Advanced Micro Devices fell.
Technology shares around the world have also been hit in recent weeks by weak demand for electronic products ranging from computers to smartphones.
On Friday, South Korean technology giant Samsung warned of a 32 percent drop in profits.
The world’s biggest smartphone maker said profits at its microprocessor business suffered as global prices for memory chips fell due to a slump in demand for consumer electronics.
“The lack of chip suggests a deep decline in exports is on the way,” said Nomura research analysts Sonal Verma and Si Young Tu.
“So far, export growth in India has already turned negative in September, but evidence is mounting that export growth in more Asian economies will turn negative in Q4,” he said in a note on Tuesday.
