The US government has told allies that companies such as Tokyo Electron and ASML may face the most severe trade restrictions if they continue to supply China with advanced chip technology, Bloomberg quoted sources as saying. Tokyo Electron Limited last descended 6.9% to JPY33,590.Applied Materials, Inc. (AMAT.US) , Lam Research (LRCX.US) and KLA (KLAC.US) , three major chip equipment makers in the US, emphasized in a recent meeting with US officials that current trade policies are counterproductive, as it will damage US chipmakers while failing to stop China's chip technology development, the sources said.(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)Related NewsCiti Prefers '4A' HK/ CN Techs, Likes XIAOMI/ SUNNY OPTICAL/ ASMPT/ KINGDEE INT'L/ Others