The Biden administration is considering tougher trade rulesin particular the Foreign Direct Product Rulein order to China's access to advanced semiconductor technology further restrict China's access to advanced semiconductor technology. The FDPR would allow the USA to restrict the export of foreign products that contain even a small amount of American technology.

This potential measure has led to a significant drop in shares from several chip manufacturers.

• NVIDIA ($NVDA (+1,5%)) fell in pre-market trading by 4%
• Supermicro ($SMCI) fell by 5%
• AMD ($AMD (+0,42%)) fell by 5,6%
• Qualcomm ($QCOM (+1,9%)) fell by 6,1%

Other companies affected are:

• ASML ($ASML (+6,19%)) fell by over 6%
• Tokyo Electron ($8035 (-2,23%)) -7,4%
• TSMC ($2330) fell by 2,3%

The USA reportedly has allies such as the Netherlands and Japan have called for the export of advanced chip manufacturing equipment to China. Failure to comply with this request could lead to the activation of the FDPR rules lead to the activation of the FDPR rules. The potential trade restrictions and the geopolitical tensions surrounding Taiwan have and will lead to considerable fluctuations in the chip industry.