As a result of the US’s strong new regulations to limit technology sales to China, shares of key Asian computer chipmakers fell on Tuesday.
According to the BBC, the US said that it would forbid American companies from selling specific chips used in supercomputers and artificial intelligence to Chinese companies.
The regulations, which went into effect on October 7, also target purchases made by foreign businesses using American machinery.
As the world economy weakens, technology companies are also witnessing a decline in demand.
Shares of the Taiwanese chipmaker TSMC slumped 7.7% on Tuesday, Samsung Electronics in South Korea was down 2.3%, and Tokyo Electron in Japan was down 5.5%.
The declines followed the reopening of the stock markets on Tuesday in Taiwan, South Korea, and Japan following their closures on Monday for public holidays.
The BBC reported that shares of SMIC, the largest chipmaker in China, plummeted by 1.7% in Hong Kong.
According to the rules, US businesses need to apply for a licence before they may give Chinese chipmakers equipment that can build more sophisticated chips.
According to Washington, the regulations seek to stop Chinese military and technology advancements.
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