The US imposed new measures to restrict sales of technology to China.
American firms will not be allowed to sell certain chips to Chinese firms.
Non-US companies that use American equipment will be targeted by the rules.
Demand for technology is falling as the global economy slows.
On Tuesday, shares of Taiwanese chipmaker TSMC plummeted, as did those of South Korea'sSamsung Electronics and Tokyo Electron.
After being closed for public holidays, stock markets in Taiwan, South Korea and Japan reopened on Tuesday.
SMIC shares fell in Hong Kong.
The US must apply for a license to supply Chinese chipmakers with equipment that can make more advanced chips.
The rules were put in place to curb Chinese military and technological advancement.
One of the biggest shifts in US policy toward exporting technology to China in decades is marked by the measures.
In the US on Monday, the technology-laden Nasdaq index closed at its lowest level since July 2020 as shares of chipmakers fell.
In recent weeks, technology shares around the world have been hit by lower demand for electronics.
On Friday, the technology giant warned of a decline in profits.
The world's biggest maker of phones said profits from its chip making business were hurt by the falling prices of memory chips.
The chip downturn suggests a deeper decline in exports.
"So far, export growth has turned negative in India, but the evidence is growing that export growth across more Asian economies will turn negative in Q4," they wrote.
The shortage of Semiconductors could be a problem for you.
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