Chip stocks recorded a decline amid tensions between the U.S. and China caused by U.S. House Speaker Nancy Pelosi’s visit to Taiwan.

Taiwan is home to some of the largest contract manufacturers, including Taiwan Semiconductor Manufacturing (TSMC) and United Microelectronics (UMC). As a result of the tensions, the companies “shares fell 2.4 per cent and 3 per cent respectively.

U.S. chip stocks including Nvidia, Intel, Qualcomm and Micron Technology fell between 0.7 per cent and 1.9 per cent, Taiwanese shares fell 1.6 per cent and Chinese shares suffered their biggest drop in more than two months.

In Europe, Infineon fell 1 per cent, while Dutch companies ASML, ASMI and BESI fell between 2 per cent and 3 per cent.

“Our congressional delegation’s visit to Taiwan honors America’s unwavering commitment to supporting Taiwan’s vibrant democracy. America’s solidarity with the 23 million people of Taiwan is more important today than ever, as the world faces a choice between autocracy and democracy,” Pelosi said in a statement shortly after landing in Taiwan.

China had strongly criticized the visit, saying it sends an encouraging signal to the pro-independence camp in Taiwan.

The sources for this piece include an article in Reuters.