Major Chip Stocks Slump After Biden Reportedly Considers More Restrictions On Sales To China

Shares of ASML—Europe’s most valuable tech company and maker of the world’s most advanced chip-making machines—slumped more than 6% early Wednesday following reports that President Joe Biden may be mulling even harsher trade restrictions to further limit China’s ability to manufacture powerful semiconductors.

Under the FDPR rule, the U.S. can impose export controls on goods made by foreign companies if any U.S.-origin technology is in the production or operation of the item. The measure could severely limit Dutch firm ASML and other companies like Japan’s Tokyo Electron from selling their products to China.

After the report, ASML’s European-listed shares were down 7.95% to $984 on Wednesday and its shares on NASDAQ tanked nearly 8% to $983 in pre-market trading.Shares of other semiconductor giants like Nvidia, AMD and Intel have also taken a hit in pre-market trading on Wednesday, falling 4.3%, 4.2% and 0.5% respectively.: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to 335-0739 or sign upAccording to the report, the U.

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