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US anti-China sanctions brought down the global semiconductor industry. Shares of TSMC, Samsung and other companies have collapsed

On Tuesday, shares in Asia’s leading chip makers, including TSMC and Samsung, fell after the US imposed a new round of sanctions on Chinese semiconductor players.

The impact of the new restrictions has also extended to chip-making equipment suppliers, including Tokyo Electron and ASML, Bloomberg reports.

Shares of Taiwan Semiconductor Manufacturing Co. , the world’s largest contract chipmaker, fell a record 8.3% to a 7-year low. Shares of Samsung Electronics Co. fell by 3.9% (an anti-record this year). Shares of SK Hynix fell 3.5%. The market value of American semiconductor companies Nvidia, AMD and Qualcomm sank more than 1%.

The value of Dutch lithographic equipment maker ASML plummeted 11% from Friday to Tuesday. Tokyo Electron, SK Hynix and Texas Instrument also suffered losses. Bloomberg has calculated that the global market value of the entire sector has shrunk by more than $240 billion in just a few days.

The US measures are aimed at stopping China’s desire to develop its own chip industry and build up its military potential. But sanctions could affect a wide variety of segments, from electric vehicles and aerospace to gadgets, including smartphones.

Chinese state media and officials have reacted to the Joe Biden administration in recent days, warning of the economic fallout and sparking speculation about possible retaliatory measures.

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