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STORY: Shares of chip makers fell Wednesday after President Joe Biden and his Republican rival Donald Trump each made news that sent a chilling effect through the semiconductor industry.

Bloomberg reported the Biden administration has told allies it may use its most severe trade curbs on companies that continue to give China access to advanced chip technology.

U.S.-listed shares of Dutch equipment provider ASML fell 11% in morning trading, even as the company beat second-quarter profit estimates.

Shares of AI heavyweight Nvidia lost ground, along with fellow chip makers AMD, Qualcomm, Broadcom, Micron Technology and Arm Holdings.

The Biden administration has been aggressive in its efforts to curb China's access to cutting-edge chips, with sweeping restrictions in October that limited exports of AI processors designed by Nvidia and other U.S. firms.

And in a separate report in Bloomberg Businessweek, Trump questioned U.S. support for Taiwan, saying the island - that China claims as its territory - should pay for U.S. protection.

That sent U.S.-listed shares of Taiwan Semiconductor, the world's largest contract chip maker, down 6%.

Taiwan is home to several semiconductor makers. And analysts have warned that any conflict over the island may shatter the global economy.

But one chip company bucked Wednesday's downward trend. Shares of Intel were up more than 2% in midday trading, with analysts pointing to its efforts to build plants in the U.S.