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.
The Biden administration is finalizing additional restrictions on semiconductor equipment and AI memory chip sales to China, escalating its tech crackdown while softening earlier proposals, according to insiders. The measures could be announced as early as next week.
Key Details of the Proposal:
Targeted Sanctions:
- Focuses on two chip factories owned by Semiconductor Manufacturing International Corp (SMIC) and over 100 Chinese companies involved in semiconductor equipment manufacturing.
- ChangXin Memory Technologies Inc, a major AI memory chip developer, is notably omitted from the entity list.
Huawei Suppliers:
- The US plans to sanction some, but not all, of the six suppliers tied to Huawei Technologies Co, a telecom leader central to China's tech strategy.
Exemptions for Allies:
- Japan and the Netherlands are exempt from the Foreign Direct Product Rule (FDPR) provisions, a concession to avoid alienating key partners.
Impact on Chipmakers:
- Japanese Chip Stocks Surge:
- Tokyo Electron Ltd and Screen Holdings Co rose 10%, while Kokusai Electric Corp soared 23%.
- Mixed Effects for US Firms:
- Lam Research Corp, Applied Materials Inc, and KLA Corp see a partial reprieve, as fewer Huawei suppliers face sanctions, easing fears of losing ground to rivals like ASML Holding NV.
Geopolitical Context:
- The US has faced resistance from allies Japan and the Netherlands, which view stricter controls as excessive. Efforts to enforce alignment, including threats to apply FDPR on foreign firms, were met with skepticism.
- Tensions rise as Donald Trump’s return to power looms, creating uncertainty about future US-China policy dynamics.
Focus on AI and High-Bandwidth Memory Chips:
- The controls will impact high-bandwidth memory chips critical for artificial intelligence, potentially affecting Samsung Electronics, SK Hynix, and Micron Technology.
The revised measures aim to tighten restrictions on China while mitigating harm to US allies and companies, signaling a calibrated approach to balancing economic competitiveness and national security concerns.
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