Tech Rout Erases $240 Billion Worldwide after US Exports Curb on China

The selloff in tech stocks had wiped out $240 billion from the sector’s global market value after the Biden administration implemented a new exports control to curb China’s access to high-end technology.

The share price of the world’s largest semiconductor producer Taiwan Semiconductor Manufacturing Company plunged 8.3% yesterday while the Taiwan stock index closed 4.5% lower and continued to slightly decline on Wednesday.

The new implementation by the U.S. would bar Chinese companies from getting their hands on semiconductor technology in which Washington tried to prevent companies from passing on those technologies to the government to develop its military operations.

Many expected similar curbs may be deployed in other countries to ensure international cooperation.

According to the data compiled by Bloomberg, the selloff had already wiped out more than $240 billion from chip stocks worldwide since the announcement of a new curb last Thursday while markets in Taiwan, Korea and Japan were closed until yesterday for holidays.