Applied Micro Circuits

(AMCC)

tumbled 10.4% in early trading as the fallout from

Nortel's

(NT)

warning spread to communications chip suppliers.

Broadcom

(BRCM)

fell 8.5% and

PMC-Sierra

(PMCS)

was down 7.8%.

The overall chip sector was sinking as well. The

Semiconductor Index

was down 5.7%.