Chinese chip stocks tumble after U.S. calls for new curbs on high-end tech

China's largest chipmaker, Semiconductor Manufacturing International Corporation, traded 3% little Monday day successful Hong Kong, amid a broader marketplace sell-off.

Hua Hong Semiconductor was down by astir 9%, portion Shanghai Fudan Microelectronics plunged by much than 20% arsenic of Monday afternoon.

Shares of U.S. chipmakers Nvidia and AMD tumbled successful Friday's trading league arsenic worries astir falling request dragged down the sector.

"The U.S. has been abusing export power measures to wantonly artifact and hobble Chinese enterprises," Chinese Ministry of Foreign Affairs Spokesperson Mao Ning said astatine a briefing implicit the weekend, according to an authoritative English-language transcript.

"Such signifier runs antagonistic to the rule of just contention and planetary commercialized rules," she said. "It volition not lone harm Chinese companies' morganatic rights and interests, but besides wounded the interests of U.S. companies."

Mao did not notation immoderate plans for Chinese countermeasures.

The planetary semiconductor proviso concatenation is highly specialized. Only a fewer companies person the astir precocious tech, portion China has been heavy investing successful home players successful an effort to drawback up.

Taiwan Semiconductor Manufacturing Company dominates the manufacturing capableness for the world's astir precocious semiconductors. Netherlands-based ASML is the world's lone company capable to marque the highly analyzable machines that are needed to nutrient the astir precocious chips.

On the different hand, U.S. companies specified arsenic Lam Research, KLA and Applied Materials are manufacture leaders for different tools needed to marque chips.

It remains to beryllium seen however damaging the caller U.S. restrictions volition beryllium connected business.

The U.S. authorities antecedently enactment Chinese companies Huawei and SMIC connected a blacklist that requires suppliers to get a licence earlier selling to them.

But suppliers to those 2 companies received licenses past twelvemonth to bash billions of dollars' worthy of business, according to Reuters.

The U.S. Bureau of Industry and Security estimated the latest regularisation changes mean it volition receive astatine slightest an further 1,600 caller licence applications a year.

International practice is besides needed, a elder U.S. authorities authoritative said successful a briefing Thursday, Reuters reported.

"We admit that the unilateral controls we're putting into spot volition suffer effectiveness implicit clip if different countries don't articulation us," the authoritative said successful the report. "And we hazard harming U.S. exertion enactment if overseas competitors are not taxable to akin controls."

The U.S. embassy successful Beijing did not instantly respond to a CNBC petition for remark connected the report.