Japanese companies like Sanyo and Sharp, which make consumer appliances but are not big semiconductor producers, could see American exports of certain products halted.

Intel, the semiconductor producer, topped the Nasdaq active list, dropping 2 5/8, to 42 7/8, with 9.1 million shares changing hands.

Cray, meanwhile, will theoretically be free to use some circuit-design patents held by Hitachi, one of the biggest semiconductor producers in the world.

More than 90 percent of semiconductor producers based in the United States are members of the industry group.

Mr. Kurlak, who for three years has recommended Intel, the semiconductor producer, downgraded the stock to "neutral."

That bet, of course, has paid off handsomely, making Intel the world's leading semiconductor producer.

In Seoul, the capital, it has always been difficult to discern the difference between the Government and the giant steelmakers, car companies, semiconductor producers and banks.

He noted that the Beijing authorities were dangling rich incentives, like cheap land and tax breaks, to lure semiconductor producers from Taiwan and elsewhere.

Intel, the semiconductor producer, was among the most-active Nasdaq stocks, falling 1 7/8, to 33 1/8, as two million shares were traded.

He said chip prices continued to rise this month as major computer manufacturers placed large orders, and semiconductor producers strained to meet the demand.