Shares of major semiconductor companies, including ASML and TSMC, plummeted on Wednesday following reports of potential tighter U.S. export restrictions on chip technology to China by the Biden administration and comments from former President Donald Trump questioning Taiwan's commitment to the U.S. defense. ASML, the world's largest semiconductor equipment maker, saw its stock fall 11%, its biggest drop since March 2020, despite posting better-than-expected Q2 earnings with net sales of €6.24 billion and a net profit of €1.58 billion. Analysts had expected Q2 net profit of €1.41 billion on revenue of €6.04 billion. Chinese sales accounted for 49% of ASML's Q2 revenue. TSMC shares fell over 6% after Trump suggested Taiwan should pay for U.S. defense. The broader market was also affected, with the Nasdaq experiencing its worst day since December 2022, dropping nearly 3%. The S&P 500's information technology sector fell 3.1%, marking its biggest one-day decline since December 2022. The VanEck Semiconductor ETF (SMH) registered its largest one-day drop since March 2020, ending down 7.1%. The Philadelphia Semiconductor Index also recorded its biggest one-day drop since March 2020, closing down 6.8%.