KUALA LUMPUR, April 1 (Bernama) -- Bursa Malaysia closed higher on Wednesday, with the key index rising 1.10 per cent, in line with firm gains across regional markets following a strong rally on Wall Street overnight, said an analyst. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the improvement in sentiment was underpinned by easing geopolitical concerns and a decline in oil prices. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increase 18.54 points or 1.10 per cent to 1,708.90 from Tuesday’s close of 1,690.36. The benchmark index opened 25.58 points higher at 1,715.94, marking its intraday high, and hit a low of 1,700.20 during the mid-morning session. The broader market was positive, with gainers leading decliners 780 to 444. A total of 475 counters were unchanged, 926 untraded and 11 suspended.
China-Taiwan Tensions Escalate Over Semiconductor Industry
- China claims Taiwan is giving away its semiconductor industry to the U.S. in exchange for political support.
- Reports suggest Taiwan Semiconductor Manufacturing Co. (TSMC) is in talks for a stake in Intel, though neither company has confirmed this.
- Taiwan’s government denies knowledge of any overseas investment application from TSMC.
U.S. and Taiwan's Semiconductor Dispute
- President Donald Trump has criticized Taiwan for taking U.S. semiconductor business and has pushed for more domestic chip production.
- China's Taiwan Affairs Office accused Taiwan's ruling party (DPP) of 'selling out' TSMC to gain favor with the U.S.
- Beijing claims Taiwan is using its chip industry as leverage for political independence.
Taiwan Responds to China's Allegations
- Taiwan’s Mainland Affairs Council reaffirmed TSMC’s importance and vowed to collaborate with the industry to maintain leadership in advanced technology.
- TSMC has not responded to the accusations.
Key Takeaways
- China views Taiwan's potential semiconductor collaborations with the U.S. as a threat.
- Taiwan denies that TSMC is being ‘given away’ and says it will protect its semiconductor dominance.
- The U.S. remains Taiwan’s key international ally, adding geopolitical complexity to the semiconductor industry.
Summary:
- China accuses Taiwan of using its chip industry as a bargaining tool for U.S. political support.
- TSMC reportedly in talks with Intel, though unconfirmed by both companies.
- Taiwan refutes the allegations and commits to maintaining its semiconductor leadership.
- The U.S.-Taiwan semiconductor relationship remains a major geopolitical flashpoint.
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