Bangkok, Thailand – Shares in computer chip makers took a hit early Wednesday after Nvidia revealed that stricter U.S. government controls on exports of computer chips used for artificial intelligence would result in an additional $5.5 billion in costs. The company announced plans to manufacture its artificial intelligence supercomputers in the United States for the first time, facing regulations that would subject its H20 integrated circuits and similar products to licensing requirements indefinitely.

Nvidia’s share prices plummeted by 5.8% in pre-market trading, with AMD, a rival chip maker, seeing a 6.5% drop. Across Asia, technology giants experienced significant declines, with Advantest in Tokyo falling by 6.7%, Disco Corp. by 7.6%, and Taiwan’s TSMC by 2.4%.

The imposition of new controls followed a call from Senator Elizabeth Warren to restrict exports of advanced AI chips to China, in particular Nvidia’s H20 chips. Concerns had risen after the emergence of China’s DeepSeek AI chatbot, prompting worries about the potential use of advanced chips by China to boost its own AI capabilities.

While former President Joe Biden did not include the H20 chips in the export controls on advanced AI chips, Nvidia disclosed plans to establish manufacturing facilities in Arizona and Texas to develop specialized Blackwell chips and AI supercomputers. This move is part of an investment expected to generate up to half a trillion dollars in AI infrastructure over the next four years.

Notably, President Donald Trump and officials had previously hinted that tariff exemptions on electronics like smartphones and laptops were temporary measures until a more targeted tariff approach for the semiconductor industry was designed. Trump hailed Nvidia’s decision to expand manufacturing in the U.S. as a victory for his administration’s efforts in this sector.