MONEY MASTER

Key Takeaways Wall Street rallied to fresh highs , led by AI and Magnificent Seven stocks, with the Dow Jones setting another record close. Maybank Investment Bank upgraded Malaysia's technology sector to Positive , citing stronger semiconductor demand and improving order visibility. Bursa Malaysia eased 0.11% , reflecting sector rotation despite a stronger ringgit and improving outlook for technology stocks. ViTrox and ITMAX emerged as Maybank's preferred picks , while strong earnings and IPO demand highlighted continued strength across selected sectors. Technology and AI remain key investment themes , supporting Malaysia's semiconductor supply chain and export outlook. Market Overview Global investor sentiment strengthened after another robust session on Wall Street, where  AI-related stocks  reignited market momentum. The  Dow Jones Industrial Average  reached a new record closing high, while the  Nasdaq Composite  jumped more than 2% as investors return...

Asian equities advanced for a second straight session, driven by  broadening gains in AI-linked sectors , even as  rising oil prices and geopolitical tensions  capped upside momentum. Tech and AI Stocks Lead Regional Gains The  MSCI Asia-Pacific Index  climbed  0.8% , putting markets on track for a  weekly gain . Key highlights: Nikkei 225   +2.7% (regional leader) SoftBank Group   +13%  on Arm-related strength Lenovo  hit a  26-year high The rally reflects  continued investor rotation into AI beneficiaries , beyond just leading chipmakers. AI Theme Expands Beyond Semiconductors Markets are increasingly pricing in  second-order AI beneficiaries , including: Memory and hardware suppliers Robotics and automation players Broader  enterprise adoption of AI solutions This signals a shift from  core infrastructure (chips)  to  downstream applications , supporting a wider range of stocks. Oil Rebounds, Li...

Key Takeaway:  Despite export bans, China’s semiconductor industry continues to secure vital chipmaking tools from US and allied firms, exposing cracks in the global tech blockade. Policy Gaps Undermine US Efforts A bipartisan US congressional report has revealed that Chinese chip manufacturers purchased  US$38 billion  worth of semiconductor equipment from American and allied suppliers in 2024 — a  66% jump  from 2022. The surge highlights  loopholes  in export controls introduced by the US, Japan, and the Netherlands. These inconsistencies allowed non-US companies to sell equipment to Chinese firms that American suppliers were barred from serving. Who’s Selling and Who’s Buying According to the report, sales to China represented  39% of total revenue  for top toolmakers: Applied Materials Lam Research KLA Corp ASML Tokyo Electron Chinese firms  SwaySure Technology ,  Shenzhen Pengxinxu , and  SiEn (Qingdao)  were identif...

Earnings Recap | NVTS.US Navitas Semiconductor  beat  Q2 revenue estimates , pulling in  $14.49M  (vs. expected $14.38M) with an  adjusted loss of $0.05/share , in line with forecasts. The company ended the quarter with a healthy  $161.2M in cash . CEO Gene Sheridan remained optimistic: "We're sharpening our focus on  AI data centers and energy infrastructure , building on our NVIDIA collaboration." The Catch: Q3 Guidance Shock Despite Q2 strength,  Q3 revenue guidance  came in well below expectations: Forecast: $9.5M–$10.5M Street Expectation: $15.67M Shares sank 17% after hours , trading at  $6.70 , as investors reacted to the gloomy outlook. What's Dragging Guidance? China tariff risks A  more selective mobile strategy Industry-wide headwinds in the semiconductor space CEO Vision Ahead Navitas plans to  move beyond mobile  into a  broader GaN and SiC market , particularly in  AI-powered data centers and criti...

Malaysia has just locked in  RM63 billion (≈ US$13.4 billion)  in chip‑sector investments as of March 2025—a record haul that signals the country’s coming‑of‑age as a serious semiconductor hub.  Where the Money Comes From Foreign inflows dominate:  RM58 billion (92%) arrives from overseas investors, while RM5 billion is local.  Flagship projects: Carsem  is building advanced packaging lines for energy‑efficient chips used in EVs and AI gear. Infineon  is erecting  the world’s largest 200 mm silicon‑carbide power‑chip fab . NXP, Syntiant and Plexus  add sensor and manufacturing firepower. National Semiconductor Strategy (NSS) at a Glance Launched in  May 2024 , the three‑phase NSS packs  RM25 billion in fiscal support  to: Nurture local “champions” Grow integrated‑circuit (IC) design talent Expand advanced‑packaging capacity Strengthen equipment manufacturing ­capabilities.  Home‑Grown Champions on the Rise Thirteen Malaysi...

Shares of  LG Electronics Inc  jumped in Seoul after reports surfaced that the company is diving into the  AI chip supply chain  — specifically in the development of  hybrid bonders  for  high-bandwidth memory (HBM)  chips. What’s the Buzz? Local media reports  LG is working on  tools essential to stack memory chips  used alongside AI processors like those from Nvidia. Targeted  mass production  of hybrid bonders is  set for 2028 , though LG has yet to confirm the timeline. Hybrid bonders are  vital for HBM manufacturing , enabling thinner, faster memory stacks for AI workloads. Market Ripple Effect LG Electronics stock  rose on the news. Meanwhile,  existing players  in the bonder space —  Hanmi Semiconductor (-6.5%) ,  Hanwha Vision (-4.7%) , and  Samsung Electronics (-1.3%)  — saw declines as investors reacted to potential new competition. Analyst Take “Entry barrier is high,...

Strategic Shift Taiwan Semiconductor Manufacturing Co (TSMC) is injecting  US$10 billion into its global unit , marking its biggest move yet to counter volatile exchange rates. This capital infusion will bolster  TSMC Global Ltd , allowing greater flexibility to manage foreign exchange hedging. Why Now? The  Taiwan dollar’s recent strength  triggered volatility fears. TSMC is responding by reallocating its FX holdings to its global unit for better cost control. Hedging costs have surged with one-year implied volatility reaching its  highest since 2011 . Operational Purpose The funds will be used for general investments — such as  bank deposits and bonds  — while facilitating  natural hedging  for US revenues and global expansion. MoneyMaster Take — Key Insights: TSMC is proactively managing currency risk  with a record cash injection. A stronger Taiwan dollar pressures export margins , reinforcing the need for FX strategy. The move stren...

The potential imposition of US tariffs on semiconductor exports poses a significant risk to Malaysia’s trade performance, according to the  Asean+3 Macroeconomic Research Office (AMRO) . The concern arises as the US, under President Donald Trump’s administration, plans to introduce  25% or higher tariffs  on imported semiconductors, among other targeted industries such as automobiles and pharmaceuticals. Impact on Malaysia: Semiconductor Industry : Malaysia is a key player in the global semiconductor market, contributing  13% of global semiconductor testing and packaging . It is also the  sixth-largest semiconductor exporter  worldwide. Any restrictions on semiconductors could disrupt supply chains, significantly affecting Malaysia’s trade balance. US-China Trade Link : Around  6% of Malaysia’s export value to China  ultimately ends up in the US, creating a complex interdependency. Any disruption to trade flows between the US, China, and Malaysia ...

  Key Takeaways: Stricter Semiconductor Monitoring : Malaysia will implement more stringent regulations on semiconductor shipments following U.S. pressure, particularly around high-end Nvidia chips. U.S. authorities have raised concerns that some of these chips, which are critical for artificial intelligence (AI) and data centers, are being diverted to China, circumventing export controls. U.S. Demands Tight Tracking : U.S. officials have asked Malaysia to ensure that Nvidia chips entering the country are carefully monitored, guaranteeing that servers carrying these chips reach their designated data centers and do not end up being rerouted. Investment, Trade, and Industry Minister  Tengku Datuk Seri Zafrul Abdul Aziz  confirmed these demands, stating that the U.S. is pushing for more detailed tracking of chip movements. Recent Legal Actions : The call for stricter regulations comes after a legal case in Singapore, where companies were accused of illicitly supplying U.S. s...

Key Developments: Foxconn’s AI server plant in Jalisco  will be  completed within a year , despite  US tariffs on Mexico. US$900 million investment  will create the  world’s largest Nvidia-powered AI server assembly plant. Jalisco’s semiconductor industry is booming , with  new investments from ASE, Micron, and Foxconn. State government is fast-tracking permits and offering incentives  to accelerate the project. Mexican industrial sector remains strong  despite  Trump’s 25% tariff threat. Foxconn’s AI Expansion in Mexico Foxconn Technology Group (Hon Hai Precision Industry Co)  is pushing ahead with its  US$900 million  AI server  megaplant  in Jalisco, Mexico, despite potential  US trade tariffs , according to  Jalisco Governor Pablo Lemus Navarro . The  state-of-the-art facility  will be dedicated to  assembling AI servers powered by Nvidia's GB200 chips , making it the  largest such pl...

Shares of Nvidia (NVDA) tumbled 9.3% on Monday  as the company faces increasing scrutiny over its advanced AI chips reaching China despite U.S. export controls. Key Market Reactions Nvidia (NVDA):  Down  9.3%  at  $113.30  (as of 3:32 p.m. ET). S&P 500 Index (SPX):  Dropped  2.1% . Advanced Micro Devices (AMD):  Fell  2.3% . Broadcom (AVGO):  Declined  6.9% . Nvidia had gained  4% on Friday , but  remains under pressure  following last week’s earnings report despite exceeding revenue expectations. Tariff & Export Control Worries President  Donald Trump announced new tariffs  on  Canada, Mexico, and China , set to take effect on Tuesday. Nvidia is under  renewed scrutiny over reports that its AI chips are reaching Chinese customers  despite U.S. restrictions. The  Wall Street Journal  reported that some  Chinese sellers are promising delivery of Nvidia's Blackwell ch...

Tech Giant Calls for Revisions to US Trade Policies Microsoft will push the Trump administration to ease AI chip export restrictions  for key US allies, including  India, Switzerland, and Israel , according to a report by  The Wall Street Journal  on Thursday. The proposal, expected to be published in a  Microsoft blog post , argues that  current curbs could drive allies toward China for AI infrastructure needs . Microsoft did not immediately respond to requests for comment. US-China AI Battle Intensifies Washington’s expanded AI chip export restrictions—introduced during Joe Biden’s final days in office—aim to limit China’s access to advanced computing power. These measures have  hurt US chipmakers and Big Tech companies  that rely on China as a major market for semiconductors. China is  capitalizing on US export restrictions , promoting itself as a  more reliable AI technology partner  for other countries, Microsoft President...

Investors in the US are paying a significant premium for  Taiwan Semiconductor Manufacturing Co. (TSMC)  shares, highlighting the persistent appeal of stocks tied to the  artificial intelligence (AI) boom . At the close of last Friday, TSMC’s  American Depositary Receipts (ADRs)  traded at a  24.6% premium  compared to its Taipei-listed shares. This marks the highest premium since October 17 and exceeds the quarterly average of 19%, according to  Bloomberg  data. What’s Driving the Premium? Index Inclusion and Accessibility : TSMC’s ADRs are included in prominent indices such as the  Philadelphia Semiconductor Index  and exchange-traded funds (ETFs) like the  VanEck Semiconductor ETF  and  iShares Semiconductor ETF . Funds tracking these indices are required to hold US-listed securities, creating sustained demand for ADRs. ADRs also provide easier access for global investors compared to locally-listed shares. Market D...

  Key Highlights: Grant Details: The  Commerce Department finalized a $6.1 billion Chips Act grant  for Micron Technology, enabling the company to build three state-of-the-art chip-making facilities. Investment Impact: Micron's Commitment:  Up to  $125 billion in planned investments  over two decades in  New York and Idaho . Additional Expansion:  Preliminary terms agreed for a  $275 million investment  to expand Micron's  Manassas, Virginia plant , which specializes in DRAM chips for defense, aerospace, automotive, and industrial applications. Chips Act Context: Passed in  2022 , the  Chips Act  allocates nearly  $53 billion  to boost U.S. semiconductor production. The Biden administration aims to finalize key grants before the Trump presidency begins, as President-elect Trump has threatened to eliminate the Act. Micron's Role: Micron, the  only U.S.-based memory chip maker , plans to construct: A...

Intel Corp. shares are enduring a sharp decline following the sudden departure of CEO Pat Gelsinger, leaving investors with no clear vision for the company's future. With the stock down 58% this year, the worst annual performance since 1983, Intel's struggles are amplifying concerns about its direction and competitiveness in the semiconductor market. Key Developments: Leadership Void: Gelsinger’s exit leaves Intel under the interim leadership of two co-CEOs, a move criticized as lacking clear direction. Analysts argue this decision further destabilizes confidence in the company. Investor Reactions: Intel's shares are on track for their worst week in three months, with analysts downgrading their ratings amid skepticism about potential candidates to fill Gelsinger's role. Strategic Challenges: Intel has failed to capitalize on the booming artificial intelligence (AI) accelerator market and faces slow progress in pivoting to a foundry model, producing chips for external...

Intel Corp., facing its biggest crisis in decades, has appointed semiconductor veterans Eric Meurice, former CEO of ASML Holding NV, and Steve Sanghi, CEO of Microchip Technology Inc., to its board. The company announced their immediate appointments on Thursday, aiming to inject "experience and operational vigor" into its leadership. Leadership Amid Challenges The board changes come as Intel searches for a new CEO following the departure of Pat Gelsinger earlier this week. Despite the leadership shift, Intel has reaffirmed its commitment to Gelsinger’s strategy of transforming into a major foundry, producing chips for external customers. Industry Expertise Eric Meurice led ASML from 2004 to 2013, turning it into a global leader in semiconductor equipment, including the cutting-edge extreme ultraviolet lithography essential for modern chip production. Steve Sanghi , who recently resumed his CEO role at Microchip Technology to address declining sales, brings extensive experien...

The United States launched its third crackdown on China’s semiconductor sector in three years, introducing new export restrictions on 140 companies . This latest effort, announced Monday, aims to curb Beijing's chipmaking ambitions , citing concerns about advancing AI for military use and threatening US national security . Key Highlights New Export Restrictions Targeted Companies : Chinese semiconductor toolmakers, including Naura Technology Group , Piotech , ACM Research , and SiCarrier Technology , face export restrictions. Companies like Swaysure Technology Co. , Si'En Qingdao , and Shenzhen Pensun Technology , which collaborate with Huawei Technologies , have also been added to the Entity List . Advanced Technology Curbs : Restrictions include high-bandwidth memory chips (HBM) critical for AI training and chipmaking tools produced globally by companies in countries like Singapore and Malaysia. US Allies : The rule also impacts non-US firms such as ASM International (Ne...

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...

Key Takeaway: Taiwan's stock market hit a two-week low on concerns over moderating export growth and risks tied to potential US tariff hikes under President-elect Donald Trump. Taiwan Market Highlights Stocks in Taipei: Fell 1.1% , led by a 1% decline in Taiwan Semiconductor Manufacturing Co and an 8.5% drop in Foxconn Technology . Taiwan Dollar: Weakened by 0.2% against the US dollar. October Exports: Estimated to grow 3.8% YoY , down from 4.6% in September , signaling slower growth in export demand . Semiconductor Sector Risks: Strong demand for AI and high-performance computing chips has likely peaked, according to analysts at DBS. Trump’s proposed tariffs and technology restrictions pose a significant challenge for Taiwan’s trade-dependent semiconductor industry. Regional Market Snapshot South Korea: Equities surged 2.2%, driven by Samsung Electronics’ buyback plans. Thailand and Malaysia: Bangkok: Gained 0.8% . Kuala Lumpur: Rose 0.7% . Philippines: Stocks up 1% ...

Malaysia is set to leverage its 40-year experience in automotive production and a robust semiconductor sector to position itself as a regional hub for electric vehicle (EV) manufacturing in Asean , Deputy Minister of Investment, Trade, and Industry Liew Chin Tong announced. Highlighting Malaysia's significance as the sixth-largest exporter of semiconductor products , Liew emphasized the strategic potential of integrating the automotive and semiconductor industries to create locally designed automotive chips. During his recent visit to Detroit, he noted how global automotive manufacturing was impacted when Malaysia’s semiconductor production slowed during the pandemic, underscoring Malaysia’s vital role in global chip supply. The government’s ambitious EV adoption targets aim for EVs to constitute 20% of total industry volume (TIV) by 2030 , 50% by 2040 , and 80% by 2050 . Liew encouraged manufacturers to see electrification as both a business opportunity and a national agend...