Technology stocks around the world have fallen sharply on concerns about the global computer chip industry.
The sell-off came after reports that the Biden administration could further tighten restrictions on semiconductor exports to China.
Former US President Donald Trump’s comments that Taiwan, the world’s largest chipmaker, should pay for its own defense added to concerns.
In the United States, the tech-heavy Nasdaq index fell 2.7% on Wednesday, while chip stocks also fell sharply in Europe and Asia.
“Regardless of the election outcome… I think we’re going to see some increased restrictions in the US,” said Bob O’Donnell, chief analyst at TECHnalysis Research.
“The big question, however, is how far they will go.”
In Asia, shares of chipmaker TSMC fell nearly 3% on Thursday, while semiconductor equipment maker Tokyo Electron fell about 9.5%.
The incident came after Nvidia closed down 6.6% in New York trading on Wednesday, while AMD lost more than 10%.
In Europe, shares of ASML, which makes chipmaking machines, fell nearly 11%.
The drop came after Bloomberg News reported on Wednesday that the U.S. government is preparing to impose its toughest restrictions ever on semiconductor manufacturing equipment to China if companies like ASML and Tokyo Electron continue to allow the country access to their advanced chip technology.
ASML declined to comment when contacted by the BBC. Tokyo Electron also did not immediately respond to a request for comment.
The BBC has also asked the US Department of Commerce for a statement.
The Biden administration has previously taken steps to limit China’s access to advanced chip technology.
In October, the country restricted exports to China of advanced semiconductors used in artificial intelligence (AI) technology.
Mr Trump’s comments on Taiwan also hinted at the possibility of disruption to global chip supplies.
Taiwan produces most of the world’s most advanced chips.
“Investors always react to every comment from the US, but despite these comments, the long-term business trend of the semiconductor industry is clearly upward,” said Marco Mezger, executive vice president of memory chip technology company Neumonda.
