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.
Key Takeaway: Huawei’s ambitions to produce advanced AI and smartphone chips have hit a wall due to US sanctions , keeping the company stuck with 7nm chip technology until at least 2026. The Challenge: Huawei’s next two Ascend processors , designed to compete with Nvidia’s AI accelerators , will rely on 7nm architecture , mainstream since 2018. US restrictions block access to extreme ultraviolet (EUV) lithography machines from ASML, essential for cutting-edge chip production. Implications: Lagging Behind: By 2025, Taiwan Semiconductor Manufacturing Co. (TSMC) will be mass-producing 2nm chips , leaving Huawei three generations behind. Production Struggles: Huawei’s partner, Semiconductor Manufacturing International Corp. (SMIC) , faces poor yield and reliability issues even for 7nm chips. Broader Impact on China: National AI Goals: Huawei’s setbacks highlight the difficulty China faces in achieving self-sufficiency in semiconductors, even with heavy state backing and R&D inv...