TOKYO, Oct 16 (Reuters) - Japan's Nikkei share average

fell on Wednesday, as chip-related stocks tracked an overnight

drop in U.S. peers, with Tokyo Electron ( TOELF ) slumping 9%.

The Nikkei was down 1.7% at 39,233.45, as of 0021

GMT, and is set to snap a four-day winning streak. The index

rose to a three-month high in the previous session.

The broader Topix was down 0.47% at 2,710.74,

Wall Street's major stock indexes closed lower on Tuesday,

with a 1% drop in technology-heavy Nasdaq as chip stocks tumbled

on demand concerns.

Meanwhile, the energy sector fell 3% as global oil prices

dropped due to a weaker demand outlook.

U.S. semiconductor stocks slumped after chip equipment maker

ASML cut its annual sales forecast over weak non-AI

chip demand and as a report said the Biden administration was

considering capping sales of advanced artificial intelligence

processors to some countries.

Chip-making equipment maker Tokyo Electron ( TOELF ) fell

nearly 10% to track a 5.3% overnight drop in Philadelphia SE

Semiconductor index.

Chip-testing equipment maker Advantest ( ADTTF ) lost 2.58%

and technology investor SoftBank Group fell 3.26%.