The United States launched new measures to block the sale of computer chip technology to China in an effort to curb the country's military advances.
In the move, it would ban US firms from selling certain chips used for supercomputers and artificial intelligence to Chinese firms.
In effect, it will make it difficult for China to obtain advanced chips for the latest technology.
As a result, shares in Asia's major computer chip maker suffered significant losses on Tuesday.
Shares of Taiwanese chip maker TSMC fell 7.7%, South Korea's Samsung Electronics fell 2.3% while Japan's Tokyo Electron plunged 5.5%.
This fall occurred after the stock markets in the three countries reopened following the closure in conjunction with the public holiday on Monday.
Meanwhile in the US on Monday, the Nasdaq index closed at its lowest level since July 2020 as shares in chip makers Intel, Nvidia, Qualcomm and Advanced Micro Devices fell.
As rumors of plans for these restrictions have circulated over the past few weeks, China has criticized the move.
