Chip stocks led by Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD) are trading lower Wednesday as the U.S. intensified semiconductor sanctions against China, followed by Presidential candidate Donald Trump’s attack against crucial contract chipmaker Taiwan Semiconductor Manufacturing Company (NYSE:TSM).
The Biden administration is contemplating using the Foreign Direct Product Rule (FDPR), which allows it to impose controls on foreign-made products that incorporate even minimal amounts of American technology, Bloomberg reports.
The U.S. has presented this possibility to officials in Tokyo and The Hague.
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