US Chipmakers Stocks Join Global Rout as Biden Expands Curbs

Shares of semiconductor companies fell Monday, with the industry selling off globally after fresh US curbs on China’s access to American technology added to a disappointing start to the earnings season, stoking concern that the industry’s downturn is far from over.

The Philadelphia Stock Exchange Semiconductor Index fell 1.4%, building on Friday’s decline of 6.1%. The index is down more than 40% thus far this year. Semiconductor capital equipment companies led the day’s declines, with Applied Materials Inc. down 4.1%, Lam Research Corp. off 6.3% and KLA Corp. down 3.1%. Advance Micro Devices Inc. dropped 3.1% while Marvell Technology Inc. shed 4.9%.

US-listed shares of chip-equipment maker ASML Holding NV fell 0.9% and Chinese bellwether Semiconductor Manufacturing International Corp. fell 4% in Hong Kong, the most in five weeks. Declines were steeper in smaller stocks.

The US measures include restrictions on the export of some types of chips used in artificial intelligence and supercomputing, and also tighter rules on the sale of semiconductor equipment to any Chinese company. Separately, the US also added more Chinese firms to a list of companies that it regards as “unverified,” which means US suppliers will face new hurdles in selling technologies to those entities.