10/04/2025

BIZ & FINANCE THURSDAY | APR 10, 2025

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Call for intra-Asean economic integration o Bloc’s secretary-general says bold action needed in chaotic world

South Korea unveils emergency help package for carmakers

TOKYO: Foxconn wants to cooperate with Nissan but is currently not engaging with the Japanese automaker, an executive in charge of the Taiwan company’s electric vehicle business told the Nikkei newspaper in an interview published yesterday. Foxconn chief strategy officer for EVs Jun Seki made the remarks ahead of a seminar in Tokyo this week where the contract manufacturer aims to lay out its EV strategy to Japanese companies. “From our perspective, the compatibility with Japanese automakers, especially Nissan, will become a strength” for Foxconn, Nikkei cited Seki, a former senior Nissan executive, as saying. Seki also said it was a great idea for Foxconn to be part of a potential broader partnership SEOUL: South Korea yesterday unveiled a US$2 billion (RM9 billion) emergency support package for its export-focused carmakers, warning American President Donald Trump’s 25% tariffs on the sector could be a “significant blow”. “Given that automobiles and auto parts are South Korea’s top exports to the US, the decision to impose a 25% tariff on these items is expected to deliver a significant blow to our auto industry,” the government said in a statement announcing the support measures. Last week, Trump announced sweeping and punitive tariffs against the United States’ biggest trading partners, the most severe of which came into force yesterday. Goods from South Korea are to be taxed at 25%. Trump also imposed steep tariffs on foreign-made cars sold in the United States, raising concerns over the global economic outlook and leaving Asia’s fourth-largest economy scrambling to respond. After industry consultation, Seoul has decided to introduce “a set of industrial safety net measures centred on the most urgent demands”, it said. The government has also “pledged to take flexible action depending on the level of

with and Mitsubishi Motors and confirmed that Foxconn was finalising a deal with Mitsubishi to supply it with EVs. Sources had previously told Reuters that Nissan’s junior partner Mitsubishi plans to outsource the production of EVs for Oceania markets to Foxconn, which also makes iPhones for Apple and artificial intelligence servers for Nvidia . In February, Nikkei reported that Foxconn had proposed partnering with Honda with an ultimate aim of creating a four-way framework that would also include Nissan and Mitsubishi after Honda-Nissan merger talks collapsed. Foxconn has previously said it would consider taking a stake in Nissan, but that its main aim was cooperation. – Reuters Honda, Nissan industry damage going forward”. South Korea’s auto-related exports to the US totalled US$42.9 billion last year, according to officials. Under the plan, the government will expand its low-cost financing programme for the auto industry by two trillion won (RM6 billion). Hyundai Motor, South Korea’s largest automaker, will also establish a one trillion won support programme for domestic auto firms in partnership with major financial institutions. Companies affected by the tariffs will be eligible for tax deferrals of up to nine months, the government added. “The importance of the domestic market is being highlighted as a way to respond to reduced export volumes caused by US tariffs and to maintain the country’s manufacturing base,“ the government said in a statement. “To this end, the government will operate an electric vehicle subsidy system linked to manufacturers’ discount amounts from the first half of this year through the end of the year.“ The government will also “significantly expand the government matching support ratio from the current 20%-40% to 30%-80%”.– AFP

ceding our place in a fractured and fast-evolving global economy,” Kao said. Manufacturing powerhouse and Asean member Vietnam was hit with a 46% tariff on exports to the United States, while Cambodia – a major producer of low-cost clothing for big Western brands – was slapped with a 49% duty. Other Asean nations hit with hefty tariffs are Laos (48%), Myanmar (44%), Thailand (36%), Indonesia (32%). Malaysia, Southeast Asia’s third-largest economy, was hit with lower tariff of 24%. Brunei also faces a 24% tariff while the Philippines was hit with 17% and Singapore 10%. The bloc has a combined population of more than 650 million but its members are at different stages of economic development, ranging from poorer countries like Laos and Cambodia to rich ones like financial centre Singapore. – AFP

KUALA LUMPUR: Asean must “act boldly” to accelerate regional economic integration as sweeping US tariffs leave much of the world caught in the middle of a devastating trade war, the bloc’s chief said yesterday. The 10-member Association of Southeast Asian Nations, which count on the United States as their main export market, were among those slapped with the toughest levies by President Donald Trump. “To remain relevant and resilient in a world where economic chaos is fast becoming the new normal, we must act boldly, decisively, and together to reaffirm Asean’s commitment to a stable, predictable, and business-friendly environment,” Asean secretary-general Kao Kim

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conference. He was speaking on the eve of a meeting of Asean economic and finance ministers as well as central bank governors in Kuala Lumpur to discuss how to respond to the US tariffs. Asean governments have chosen not to the retaliate against Washington, preferring dialogue. But their export-oriented economies risk being hurt by a global trade war after China – another key market – imposed its own tariffs on the United States. “Without urgent and collective action to accelerate intra-Asean economic integration and diversify our markets and partnerships, we risk

Foxconn wants to work with Nissan on EVs: Official

A man walking past a signboard in front of the Samsung Electronics Nano City Hwaseong Campus in South Korea. – REUTERSPIC

SK Hynix tops Samsung Electronics in DRAM market share for first time SEOUL: SK Hynix overtook Samsung Electronics for the first time to lead global revenues for dynamic random access memory (DRAM) chips in the first quarter of this year, according to market researcher Counterpoint Research. rival Samsung, held a 36% share of the DRAM memory chip market, followed by Samsung with 34% and Micron with 25%, Counterpoint Research said in a report. DRAM memory chips are widely used in smartphones and PCs. high-bandwidth memory (HBM) chips that aid in the processing of vast amounts of data to train AI technology and are crucial for Nvidia’s chipsets, as it has been a main HBM chip supplier to Nvidia. At a shareholder meeting in March, Samsung executives apologised for poor stock prices stemming from its late response to the booming AI chip market.

improved HBM3E 12-layer chips to Nvidia in the middle of this year. SK Hynix said last month that it has shipped its HBM4 12-layer chip samples to customers, adding that the company aims to complete preparations for mass production of 12-layer HBM4 products within the second half of this year. – Reuters

They expected chip earnings to recover in the second half on demand for smartphones and data centres, and as the company aims to supply its

However, Samsung has lagged behind SK Hynix in supplying HBM chips to AI leader Nvidia.

South Korea’s SK Hynix, which has been the world’s second-largest memory chip maker behind cross-town

SK Hynix has been leading a global race to meet explosive demand for