Intel (INTC) and GlobalFoundries (GFS) shares rose Wednesday, while Nvidia (NVDA) and 澳洲幸运5官方开奖结果体彩网:other chip stocks tumbled, amid concerns about tightening trade restrictions and rising geopolitical tensions affecti🉐ng the chip industry.

GlobalFoundries led gains on the Nasdaq with shares up more than 6% around 2 p.m. ET Wednesday. Intel climbed close to 2%. Meanwhile, chip manufacturing equipment maker ASML (ASML) led losses on the Nasdaq, falling nearly 12%. Shares of Advanced Micro Devices (AMD), Qualcomm (QCOM), and others were also lower, with the VanEck Semiconductor ETF (SMH) down 6%.

Taiwan-based chip manufacturing giant Taiwan Semiconductor Manufacturing Company (TSM) is a key player in the space, supplying 澳洲幸运5官方开奖结果体彩网:fabless companies like Nvidia, Qualcomm, AMD, and others with the hardware necessary to make their products. 澳洲幸运5官方开奖结果体彩网:Americ🐟an depositary receipts (ADRs) of TSMC also dropped Wednesday.

Intel and GlobalFoundries have manufacturing capabilities in the U.S., and could stand to benefit from ꦦ澳洲幸运5官方开奖结果体彩网:support🍸 for domestic chip manufacturing as geopolitical tensions rise.

How Stricter Trade Res🌱trictions Could Affect the Chip🐟making Industry

The Biden administration is reportedly considering implementing stricter trade restrictions on exports to China, which could hurt sales for ASML and many other chip-related companies, according to Bloomberg.

Imposing the foreign direct product rule (FDPR) would allow the U.S. to curb exports of goods made in other countries that use American tech. That could for example hold back revenue for the Netherlands’ ASML, which makes lithography technology 澳洲幸运5官方开奖结果体彩网:essential in mass-producing semiconductors, since China represents the company's largest market.

Separately, former President Donald Trump said in an interview with Bloomberg Businessweek that Taiwan, where chips for many of the biggest tech giants in the U.S. are manufactured, should pay the U.S. for defense, adding to geopolitical worries.

The Biden administration's 澳洲幸运5官方开奖结果体彩网:CHIPS and Science Act has 澳洲幸运5官方开奖结果体彩网:invested billions of dollars to support chip manufacturing in the U.S. and reduce reliance on other countries.