Nvidia fell 4%, Advanced Micro Devices 3.3% and Intel 0.7%, while futures tracking the tech-heavy Nasdaq 100 index edged 0.5% lower.
The new restrictions being considered by the Commerce Department would include a ban on the sale of Nvidia's advanced chip called A800 without a special U.S. export license.
The Philadelphia chip index (.SOX) has surged more than 44% so far this year, far ahead of the benchmark index's (.SPX) 14% rise.
Among other chip stocks, Marvell Technology (MRVL.O), Applied Materials (AMAT.O), Intel (INTC.O), Microchip Technology (MCHP.O) fell between 1.1% and 3% on Wednesday.
Across the Atlantic, Nordic Semiconductor (NOD.OL), Dutch chipmaker ASML (ASML.AS), Milan-listed STMicroelectronics , however, gained between 1.2% and 2%.
Persons:
chipmakers, Biden, Susannah Streeter, Hargreaves Lansdown, Medha Singh, Arun Koyyur
Organizations:
Companies, Nvidia, Devices, Intel, U.S ., Commerce Department, Wall Street, AMD, Marvell Technology, Materials, Technology, Nordic Semiconductor, Thomson
Locations:
China, U.S, Philadelphia, Milan, Bengaluru