Shares of major Asian computer chip makers tumble after US Announced new strict measures to limit the sale of technology to China.
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The United States said it would ban American companies from selling certain chips used for supercomputers and artificial intelligence to Chinese firms.
The rules announced Friday also target sales from non-U.S. companies that use American equipment.
Tech firms are also seeing a drop in demand as the global economy slows.
On Tuesday, shares of Taiwanese chipmaker TSMC shed more than 8 percent, Japan's Tokyo Electron shed 5.5 percent and South Korea's Samsung Electronics shed 1.4 percent.
The drop came after stock markets in Taiwan, Japan and South Korea reopened after being closed for a public holiday on Monday.
Elsewhere in Asia, shares in China's largest chipmaker SMIC fell 4 percent in Hong Kong.
under the regulations US company It has to apply for a license to provide equipment to Chinese chipmakers capable of producing more advanced chips.
Washington said the rule was aimed at limiting China's military and technological advances.