US AI chip export restrictions to China reflect on stocks

Asian chipmakers and related stocks were mostly lower on Wednesday after the U.S. announced new restrictions on exports of artificial intelligence chips to China. Shares of chipmaking giant Taiwan Semiconductor Manufacturing Corp fell as much as 1.27 percent, while peer Hon Hai Precision Industry, also known as Foxconn, lost 0.47 percent. Meanwhile, shares of domestic Chinese chipmaker SMIC rose as much as 4.62 percent, but later pared gains to 2.43 percent. Peer Hua Hong Semiconductor lost 0.41 percent. U.S. stocks also fell Shares of popular chipmakers fell on Tuesday after the U.S. Commerce Department said it planned to tighten restrictions on the sale of advanced artificial intelligence chips to China. Nvidia shares fell 7 percent, while AMD fell nearly 4 percent. Marvell Technology, Intel and Broadcom each lost about 3 percent. The US government said the new rules were intended to close loopholes that emerged after a ban on AI chip exports was imposed last year.