A sell-off in chip stocks intensified Monday following a report that semiconductor makers are cutting ties with Huawei following restrictions imposed by President Donald Trump's administration.

The U.S. Commerce Department last week blacklisted Huawei and effectively halted its ability to buy American-made parts and components. In wake of the restrictions, Google has suspended business activity with the Chinese giant. Other Huawei suppliers, including Qualcomm, Broadcom, Intel and Xilinx, told employees they will not sell to the Chinese firm until further notice, according to Bloomberg News.

U.S. chip suppliers are losing a big customer as Huawei, the world's largest provider of telecom equipment, purchases $20 billion of semiconductors each year, according to an Evercore estimate.

Shares of Xilinx tumbled 3.5% on Monday, while Qualcomm stock dropped nearly 6%. Shares of Analog Devices, Broadcom and Advanced Micro Devices are all under pressure following the Huawei ban. The VanEck Vectors Semiconductor ETF is down almost 4% on Monday, nearly 15% below its intraday all-time high. All but one component of the ETF were at correction levels or worse as of Monday and almost half of the 25 stocks are at bear market levels.