KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Taiwan’s Economy Minister, Kuo Jyh-huei, has dismissed comments made by former US President Donald Trump about Taiwan’s role in the semiconductor industry. Trump's remarks in July suggested that Taiwan had taken American semiconductor business and should "pay us for defense," which led to a decline in the shares of TSMC, the world's largest contract chipmaker and a key supplier to major companies like Apple and Nvidia.
Key Points:
Misunderstanding of Taiwan’s Role: Minister Kuo, speaking in Taipei before the Semicon Taiwan exhibition, stated that Trump's comments reflect a misunderstanding of Taiwan's role in the global semiconductor supply chain. Kuo clarified that Taiwan did not "steal" the U.S. chip industry but rather complements it by manufacturing chips commissioned by U.S. companies.
Investment in the U.S.: TSMC, a significant player in the semiconductor market, is investing heavily overseas, including spending $65 billion on three new plants in Arizona. These investments align with the Biden administration's strategy to enhance the U.S. semiconductor supply chain and reduce dependency on foreign-made chips. The U.S. Chips and Science Act, enacted in 2022, provides $52.7 billion in subsidies to support domestic semiconductor research and manufacturing.
Continued U.S.-Taiwan Relations: Despite Trump's contentious remarks, Taiwan received considerable support during his 2017-2021 administration, including arms sales, which have continued under President Joe Biden. Trump's earlier interactions with Taiwan, such as his phone call with then-President Tsai Ing-wen in 2016, had already raised tensions with China, which claims Taiwan as part of its territory.
Minister Kuo's comments aim to clarify Taiwan's position in the semiconductor industry and address the misinformation surrounding its role in relation to the U.S.
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