KUALA LUMPUR, Dec 4 (Bernama) -- Bursa Malaysia rallied to close broadly higher on Wednesday amid strong buying interests mainly in utility and technology stocks, with the benchmark index gaining 0.44 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.13 points to 1,614.09 from Tuesday’s close of 1,606.96. The index opened marginally higher at 1,606.97 and moved between 1,606.53 and 1,616.03 throughout the day. Advancers thumped decliners 727 to 381 on the broader market, with 522 counters unchanged, 781 untraded and 10 suspended. Turnover advanced to 3.60 billion units valued at RM3.30 billion versus 3.32 billion units valued at RM3.30 billion on Tuesday.
Intel’s $7.86 billion subsidy from the US government comes with significant restrictions on its ability to sell stakes in its chip manufacturing unit, Intel Foundry, if it becomes an independent entity. The deal is part of a broader $39 billion US initiative to boost domestic chip production, benefiting companies like Intel and Taiwan Semiconductor Manufacturing Co (TSMC).
Key Restrictions on Intel Foundry:
- Intel must maintain at least 50.1% ownership if the unit is spun off into a private subsidiary.
- If Intel Foundry goes public, Intel must remain its largest shareholder and cannot sell more than 35% to any single shareholder without triggering change-in-control provisions.
- Any control changes would require US Department of Commerce approval, as per the terms of the subsidy.
Impact on Intel’s Plans:
- Intel CEO Pat Gelsinger announced plans in September to spin off Intel Foundry and seek outside investors for the unit.
- The company is required to comply with these restrictions to continue its $90 billion investments in Arizona, New Mexico, Ohio, and Oregon, ensuring the production of cutting-edge chips remains in the US.
Government Oversight:
The Commerce Department is negotiating similar change-in-control provisions with all direct subsidy recipients, ensuring control of critical chip production remains within compliant entities.
Strategic Implications:
While the restrictions aim to safeguard US chipmaking capabilities, they could limit Intel's strategic flexibility in raising capital or managing the Intel Foundry spin-off, a potential challenge as it competes in a rapidly evolving global semiconductor market.
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