\n
![](\"https:\/\/readwrite.com\/wp-content\/uploads\/2024\/07\/a-striking-3d-render-of-a-towering-wall-composed-o-ckTeVR8QQ5yYLWRQX22opA-rPLugrwTTueokS0BJRcnzg-900x506.jpeg\")
<\/p>\n [ad_1]
\n<\/p>\n
The Nasdaq took a significant plunge on Wednesday driven by falling tech stocks as fears mounted over potential new restrictions on semiconductor exports to China.<\/p>\n
The sell-off was triggered by a Bloomberg report<\/a> suggesting Joe Biden administration is considering implementing sweeping regulations to further limit sales of critical chipmaking equipment to China.<\/p>\n The Philadelphia Semiconductor Index experienced its most substantial one-day decline since the COVID-19 pandemic, plummeting 6.8%.<\/p>\n One day\u2019s trading saw $500 billion in market value from chip-related stocks wiped out. Yet, despite the setback, the index remains up 30% for the year, outperforming the broader S&P 500 index.<\/p>\n Chipmaker giants were among the hardest hit. Nvidia, one of the world\u2019s most valuable companies<\/a> and the chipmaker at the heart of the AI revolution, saw its stock fall nearly 7%, wiping out more than $200 billion in market capitalization.<\/p>\n Fellow chipmakers AMD<\/a> and Micron<\/a>, experienced declines of 10% and 6% respectively.<\/p>\n ASML Holding, the Dutch chipmaking equipment provider and the world\u2019s only producer of extreme ultraviolet lithography machines was ever worse off seeing shares plummet by 13%.<\/p>\n The potential crackdown is seen as an extension of the U.S. government\u2019s efforts to protect its semiconductor industry<\/a>, which it views as strategically important in the competition with China<\/a>.<\/p>\n Washington has made significant efforts to stop or at least limit China\u2019s access to advanced processors used for AI and high-performance computing (HPC) applications for over a year.<\/p>\n Adding to the market turmoil were comments made by former President Donald Trump, who is seeking re-election. Trump criticized Taiwan, a crucial hub in the global chip supply chain, stating that it should pay the United States for its defense.<\/p>\n \u201cTaiwan should pay us for defense,\u201d Trump said according to a transcript of an interview published by Bloomberg. \u201cTaiwan took our chip business from us, I mean, how stupid are we?\u201d he said.<\/p>\nWhy are tech stocks down?<\/h2>\n