KUALA LUMPUR, Jan 23 (Bernama) -- Bursa Malaysia’s benchmark index recouped earlier losses to settle higher, maintaining a more than six-year high, buoyed by continued buying interest in technology stocks, while the strengthening of the ringgit against the US dollar further lifted investor sentiment. At 2.27 pm today, the local currency strengthened to 3.9992 versus the greenback, its strongest level in more than seven years. It was last seen at this level on June 18, 2018, at 3.9960/9990. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.85 points or 0.17 per cent to 1,719.99 from yesterday’s close of 1,717.14. The index surpassed its previous peak of 1,719.00 recorded on Feb 26, 2019. The barometer index opened 1.30 points lower at 1,715.84 and moved between an intraday low of 1,711.89 in early trade and a high of 1,723.41 in late afternoon before slipping slightly toward the close. However, market breadth was negative with decl...
The US and Taiwan have sealed a landmark trade agreement that strengthens America’s semiconductor ambitions while easing trade barriers for Taiwanese exporters — with Taiwan Semiconductor Manufacturing Co at the centre of the deal.
Under the agreement, Taiwan pledged US$250 billion in US investments, led by TSMC’s plan to expand its semiconductor manufacturing cluster in Arizona. In return, the US will cut tariffs on Taiwanese goods to 15% from 20% and grant exemptions to Taiwanese chipmakers that commit to expanding production on American soil.
The move aligns with the Trump administration’s broader strategy to onshore critical industries, reduce reliance on overseas supply chains, and de-escalate tariff tensions without derailing economic growth. It also builds on recent trade progress with partners such as the European Union, Japan, and China.
TSMC’s dominance in advanced chip manufacturing makes this deal strategically significant. The company supplies critical processors to global tech giants such as Nvidia and Apple, powering AI data centres, smartphones, and next-generation computing. Following the latest expansion, TSMC is expected to operate around a dozen facilities in Arizona, some with advanced manufacturing capabilities, supported by subsidies under the 2022 Chips and Science Act.
Despite the scale of investment, sceptics note that most of TSMC’s production remains in Taiwan, and rebuilding a meaningful share of the global semiconductor supply chain in the US could take decades and come at high cost. Still, the deal strengthens TSMC’s footprint outside Taiwan, helping to diversify geopolitical risk.
The agreement also carries broader strategic implications. TSMC remains a cornerstone of Taiwan’s economy and is viewed by some analysts as a deterrent against regional conflict, given the global dependence on its chip production. By expanding its US presence, the company deepens economic ties that may reinforce long-term geopolitical stability.
TSMC reaffirmed strong demand for its products, announcing plans to spend up to US$56 billion in capital expenditure this year, underscoring continued momentum in AI and high-performance computing.
Key Takeaways
Taiwan commits US$250bn to US investment, led by TSMC
US cuts tariffs on Taiwanese goods to 15%
TSMC to expand Arizona fabs, boosting US chip production
Deal supports AI-driven semiconductor demand
US aims to secure critical supply chains without hurting growth
TSMC plans up to US$56bn capex this year
Comments
Post a Comment