The largest contract chip manufacturer in the world, Taiwan Semiconductor Manufacturing Co., experienced a record decline of 8.3% on Tuesday.
Concerned that US attempts to promote international collaboration could limit their capacity to sell to China, Samsung Electronics Co. and Tokyo Electron Ltd. also saw declines.
The currency markets also experienced a selloff.
In relation to the US dollar, the South Korean won fell more than 1.6%, while the Taiwan dollar fell 0.7% as their respective stock markets experienced losses.
China is the second-largest market for cloud computing in the world, thus according to Phelix Lee, an equities analyst at Morningstar Inc..
We expect short-term worries surrounding foundry demand will rise.