On Sunday the Wall Street Journal said the Treasury Department is drawing up rules to block companies with at least 25 percent Chinese ownership from buying companies involved in "industrially significant technology."

Several of the market’s favorite semiconductor names are tanking on Monday as investors grow concerned over President Donald Trump’s plan to restrict foreign investments in U.S. technology companies.

Treasury Secretary Steven Mnuchin said on social media Monday the administration’s statement will apply to “all countries that are trying to steal our technology” rather than just China, referring to the earlier Wall Street Journal report.

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The iShares PHLX Semiconductor ETF closed down 2.9 percent. Top chip stocks such as AMD, Micron and Nvidia all ended more than 4 percent lower. All three stocks were up more than 25 percent so far this year through Friday.

Intel shares also declined nearly 4 percent after Nomura Instinet downgraded the chipmaker’s shares due to “lack of leadership” after its CEO resigned.