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 Key Takeaway Nvidia is warning that the proposed  AI GAIN Act  could hurt its global competitiveness, just weeks after President Trump struck a deal allowing chip exports to China. The legislation would force U.S. AI chipmakers to prioritize domestic orders, raising concerns of supply disruptions, weaker global presence, and intensified pressure from Washington’s tech policies. What’s the AI GAIN Act? Part of the  National Defense Authorization Act . Requires AI chipmakers to  fill U.S. orders first  before selling advanced processors abroad. Blocks Commerce Department from approving exports of the most powerful AI chips (processing power  4,800+ ) if U.S. buyers are still waiting. Nvidia Pushes Back Nvidia insists it  never deprives U.S. customers  to serve overseas demand. Warns the bill would  “restrict global competition”  and harm U.S. leadership in AI. Says impact would mirror the controversial  AI Diffusion Rule , which...

Potential Tariff Relief for Malaysia’s Semiconductor Sector Malaysia may avoid the full brunt of the U.S.’s proposed 100% tariff on imported semiconductors, according to CIMB Treasury & Markets Research. Economists Michelle Chia and Azri Azhar said a  substantial share of Malaysia’s chip exports come from U.S. firms operating locally , which may qualify for exemptions under U.S. President Trump’s relocation-focused tariff policy. Export Breakdown Investment Minister Tengku Zafrul revealed that  65% of Malaysia’s chip exports to the U.S. originate from U.S. companies  based in Malaysia. Analysts believe a  portion of the remaining 35% — linked to U.S. affiliates — may also be exempt . “The exemption mechanism may partially shield Malaysia’s semiconductor sector given the scale of U.S. and MNC operations in the country,” CIMB noted. GDP Sensitivity to Tariff Impact CIMB warns that if fewer exemptions materialize,  every additional 10% of chip exports affected ...

Key Takeaway Malaysia’s semiconductor sector may avoid the full impact of the proposed  100% U.S. chip tariff , with  up to 65% of exports potentially exempted  due to originating from U.S. firms operating in Malaysia, according to CIMB analysts. Tariff Exposure Around  65% of Malaysia’s chip exports to the U.S.  come from American companies with domestic facilities. An additional portion of the remaining 35% may also qualify for exemption due to U.S. ownership or linkages. Macro Sensitivity Every 10% of chip exports affected  could reduce  Malaysia’s GDP by 0.29% , highlighting the economy’s exposure to U.S. policy shifts. Analysts caution that while exemptions may soften short-term impact,  longer-term risks remain  as companies  reassess supply chain locations , potentially denting Malaysia’s investment outlook. Policy & Outlook CIMB holds its  2025 GDP growth forecast at 4.3% . Expects  Bank Negara Malaysia to keep the ...