Tech stocks declined Wednesday afternoon, with the Technology Select Sector SPDR Fund (XLK) falling 0.9% and the SPDR S&P Semiconductor ETF (XSD) dropping 1.4%.

The Philadelphia Semiconductor index retreated 1.4%.

In sector news, US Commerce Secretary Howard Lutnick is exploring the possibility of the federal government taking equity stakes in semiconductor companies that receive CHIPS Act funding to build factories in the US, Reuters reported.

In corporate news, Intel (INTC) is in talks with other large investors for an equity infusion at a discounted price, CNBC's David Faber reported. Intel shares dropped 7%.

Microsoft (MSFT) has restricted access for Chinese companies to advance notifications on cybersecurity vulnerabilities in its technology, Bloomberg reported. Microsoft shares were shedding 0.7%.

Sony (SONY) said Wednesday it is raising the recommended retail price for PlayStation 5 consoles in the US from Aug. 21, citing a "challenging" economic environment. Sony shares decreased 0.4%.

Amazon.com (AMZN) is planning to unveil a new tablet with the Android operating system software for the first time, Reuters reported. Separately, Amazon and AMD (AMD) joined Korean Development Bank in a $45 million equity funding round for South Korean AI company Upstage. Amazon shares were down 1.5%.