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.
The Trump administration is nearing a trade deal with Taiwan that could lower US tariffs on Taiwanese goods and unlock a massive new wave of chip investment by Taiwan Semiconductor Manufacturing Co (TSMC) in the United States, according to Bloomberg.
What’s on the Table
Tariffs on Taiwanese imports could be cut to 15% from 20%, putting Taiwan on par with Japan and South Korea, which secured similar deals last year.
In return, TSMC would commit to building at least four additional chip fabs in Arizona, on top of:
Six fabs already announced
Two advanced packaging facilities
If finalised, the agreement could be announced as early as this month.
Why This Is a Big Deal
US Chip Investment Could Exceed US$100 Billion
TSMC has already pledged up to US$165 billion for US manufacturing.
With each fab costing over US$20 billion, the four new plants could push total incremental investment past US$100 billion.
The additional fabs are expected to be completed in the 2030s.
Trump’s Trade Playbook in Action
The deal would give President Donald Trump another headline investment win tied to his tariff strategy.
Similar frameworks have already been struck with Japan, South Korea and the EU, exchanging lower tariffs for onshore investment in strategic industries.
Strategic and Geopolitical Undercurrent
TSMC sits at the heart of AI and advanced chip supply chains.
Washington is keen to reduce reliance on overseas production as China continues to assert claims over Taiwan, a stance Taipei rejects.
What’s Still Unclear
Execution timeline: It’s uncertain how quickly TSMC can scale US manufacturing further.
Legal risk: The US Supreme Court is expected to rule soon on the legality of Trump’s global tariffs. Any rollback could weaken the administration’s leverage in negotiations.
China reaction: Any Taiwan-US agreement risks provoking Beijing.
Investor Takeaway
If sealed, this deal would:
Strengthen TSMC’s long-term growth visibility, especially in AI-related chips
Reinforce the US as a major node in global semiconductor manufacturing
Highlight how tariffs are being used as bargaining chips to force strategic investment
For markets, the key is not just tariff relief, but whether TSMC’s expanded US footprint translates into sustained capex, equipment demand, and supply-chain upside over the next decade.
Bottom Line
This potential Taiwan trade deal underscores a clear message: tariff cuts are no longer just about trade — they’re about securing critical technology supply chains. If finalised, the agreement would mark another step in reshaping the global semiconductor map, with TSMC firmly at its centre.
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