KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Futurum Group CEO Daniel Newman says the U.S. government’s decision to take a 10% stake in Intel marks a pivotal moment in Washington’s push to strengthen domestic chipmaking and reduce reliance on Taiwan Semiconductor Manufacturing Co. (TSMC). Speaking with Bloomberg’s Vonnie Quinn and Caroline Hyde on The Close, Newman framed the move as both a market signal and a national security play.
A U.S.-Backed Chip Champion
Newman noted that while TSMC remains the industry’s gold standard, ongoing tensions between China and Taiwan make U.S. dependence on the Taiwanese chipmaker unsustainable. “The United States needs its own chip champion that can manufacture at the same level as TSMC,” he said. “Relying solely on Taiwan is not a great strategy going forward.”
Intel, however, has struggled to regain credibility with major clients such as NVIDIA, Apple, and AMD. Newman argued that government backing could accelerate Intel’s foundry ambitions, even if that means taking “skin in the game” through a direct equity stake.
Passive Investment Model
The structure of the investment remains a key question. Newman suggested that taxpayers may benefit if the government’s stake is structured as non-voting shares. “If the investment ends up being successful, taxpayers could see returns,” he said, drawing parallels to Taiwan’s early backing of TSMC.
He added that this could mark a shift in how CHIPS Act funds are deployed. Instead of one-way grants, equity stakes offer potential payback if Intel recovers or spins off part of its business.
Talent and Policy Gaps
Still, skepticism remains. Hyde pressed on whether the U.S. should focus more on attracting global talent to strengthen its semiconductor sector. Newman acknowledged that Intel has strong engineering resources but conceded that mismanagement has slowed its progress. “Policy needs to help bring the best talent to the U.S. and anchor it at companies like Intel,” he said.
He floated potential joint ventures and government-driven collaborations—such as nudging NVIDIA and AMD to build chips with Intel—as ways to speed up development. But he cautioned that without advanced node production on U.S. soil, America risks falling behind if Taiwan is drawn into a conflict with China.
Broader Implications for the Market
The discussion also raised broader concerns: where does Washington draw the line on ownership stakes? “Is NVIDIA next?” Hyde asked, noting the company’s central role in AI and its market dominance. Newman said NVIDIA’s near-term prospects look solid, pointing to strong demand for its Blackwell generation GPUs and margins expected in the mid-70s.
Still, he warned that any stumble—even minor—could send shockwaves through markets. “The whole market basically comes into this expecting NVIDIA not only to perform but to outperform,” he said.
The China Factor
On the China front, Newman believes demand for NVIDIA chips will remain strong despite ongoing export restrictions. “China really needs NVIDIA chips and will for the foreseeable future,” he said. Even the less advanced H20 GPUs, designed to comply with U.S. rules, remain in demand among Chinese researchers building AI models.
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