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 has imposed a 25% tariff on a narrow category of advanced semiconductors, a move closely tied to a deal that allows Nvidia to resume shipments of its Taiwan-made H200 AI chips to China — marking a major shift in Washington’s tech trade strategy.
What’s the Deal?
The tariff applies to specific high-end AI processors, including Nvidia’s H200 and Advanced Micro Devices’s MI325X.
The duty is collected when chips enter the US, before being re-exported to China or other overseas markets.
In return, Nvidia received approval in December to sell H200 chips to China, subject to export licences.
President Donald Trump described the arrangement as a win-win:
“China wants them… and we are going to be making 25% of the sale of those chips.”
Why This Matters
This is not a blanket chip tariff. Instead, the US is:
Holding off broader semiconductor levies following a national security probe
Using targeted tariffs + licensing control as leverage
Monetising access to critical AI hardware rather than fully blocking it
The approach reflects a pragmatic pivot: restricting China’s access less aggressively, while ensuring the US captures economic value from global AI demand.
Winners and Trade-Offs
For Nvidia
A significant breakthrough after years of export curbs
Reopens access to the world’s largest semiconductor market
Strengthens Nvidia’s position as the gatekeeper of global AI compute
For the US
Generates tariff revenue
Maintains oversight through export licences
Signals openness to similar arrangements for other chipmakers, including Intel and AMD
The Taiwan Angle
The move comes as Taiwanese officials head to Washington to finalise a broader trade deal that could:
Cut tariffs on Taiwanese imports to 15% (from 20%)
Further expand Taiwan Semiconductor Manufacturing Co’s US manufacturing footprint
TSMC already plans up to US$165 billion in US investments, with more fabs potentially on the way.
Market Implications
This policy shift underscores a new reality for investors:
AI chips are no longer just a national security issue — they’re a revenue tool
The US is selectively opening doors while charging a toll
Nvidia’s geopolitical risk profile has improved materially, even as regulatory uncertainty remains
Bottom Line
Rather than fully decoupling from China, the US is choosing a “controlled access” model — allowing AI chip exports, taxing them, and keeping licences as a backstop. For Nvidia, it’s a strategic victory. For markets, it’s a sign that AI geopolitics is moving from bans to bargaining.
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