KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Shares of LG Electronics Inc jumped in Seoul after reports surfaced that the company is diving into the AI chip supply chain — specifically in the development of hybrid bonders for high-bandwidth memory (HBM) chips.
What’s the Buzz?
Local media reports LG is working on tools essential to stack memory chips used alongside AI processors like those from Nvidia.
Targeted mass production of hybrid bonders is set for 2028, though LG has yet to confirm the timeline.
Hybrid bonders are vital for HBM manufacturing, enabling thinner, faster memory stacks for AI workloads.
Market Ripple Effect
LG Electronics stock rose on the news.
Meanwhile, existing players in the bonder space — Hanmi Semiconductor (-6.5%), Hanwha Vision (-4.7%), and Samsung Electronics (-1.3%) — saw declines as investors reacted to potential new competition.
Analyst Take
“Entry barrier is high,” said Greg Roh from Hyundai Motor Securities. Current leaders have years of know-how.
Bloomberg Intelligence notes LG could face earnings pressure from rising R&D and capex, with limited revenue contribution expected before 2030.
Money Master Take
This move reflects LG’s long-term bet on the booming AI ecosystem. While competition is stiff and returns are distant, early positioning in next-gen chip equipment could open up new verticals — especially if HBM adoption continues to rise in AI servers and data centers.
For investors: It's a long game. Expect volatile gains in the short term, but LG’s ambition to tap into AI’s hardware backbone is worth watching.
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