18/04/2025

FRIDAY | APR 18, 2025

/thesuntelegram FOLLOW / Malaysian Paper

ON TELEGRAM m RAM

16

BIZ & FINANCE

AMD says US rule on chips to China could cost it US$800m SAN FRANCISCO: Chip developer Advanced Micro Devices (AMD) on Wednesday said it expects new US licensing requirements for semiconductors exported to China to cost it as much as US$800 million (RM3.5 billion).

and related reserves”, it added. US officials last week told Nvidia it must obtain licences to export its H20 chips to China because of concerns they may be used in supercomputers there, the Silicon Valley company said in a SEC filing. The United States had already restricted exports to China of Nvidia’s most sophisticated GPUs, tailored for powering top-end artificial intelligence models. Nvidia was told the licencing requirement on H20 chips would last indefinitely, it said in the filing. CEO Jensen Huang has said publicly that the AI chip powerhouse will balance legal compliance and technological advances under Trump, and that nothing will stop the global advancement of artificial intelligence. “We’ll continue to do that and we’ll be able to do that just fine,”the Taiwan born entrepreneur told reporters late last year. Trump’s predecessor Joe Biden restricted Nvidia from selling some of its top AI chips to China, which the United States sees as a strategic competitor in high tech. – AFP

The Silicon Valley company’s earnings warning, filed with the US Securities and Exchange Commission (SEC), came a day after rival Nvidia notified regulators that it expects a US$5.5 billion hit this quarter from licensing requirements on the main chip it can legally sell in China. Shares in both companies were down by about 7% at the close of formal trading on Wednesday. The new US export control measure applies to MI308 graphics processing units (GPUs) designed for high-performance applications like gaming and artificial intelligence, AMD said. AMD said in the filing that it “expects to apply for (export) licences but there is no assurance that licences will be granted”. The US$800 million earnings blow it forecast would come from charges in “inventory, purchase commitments

Japanese Prime Minister Shigeru Ishiba gesturing towards reporters as AMD chairman and CEO Lisa Su smiles at the start of their meeting at the prime minister’s official residence in Tokyo yesterday. – AFPPIC

Trump touts ‘big progress’ in tariff talks with Japan part, we want to do it as soon as possible.”

‘Unprecedented’ uncertainty to hit S. Korea’s growth: Central bank SEOUL: South Korea’s central bank chief said yesterday that annual growth is expected to fall short of a recent forecast due to sweeping US tariffs and the fallout from the ex-president’s martial law declaration. President Donald Trump’s threatened 25% tariffs on the export-dependent South Korea have rattled Asia’s fourth-largest economy, sending Seoul-listed shares tumbling and pushing the currency to its weakest level since 2009. The country has also seen months of political chaos, triggered by ex-president Yoon Suk Yeol’s December attempt to suspend civilian rule, which culminated in his removal from office and new elections on June 3. “This year’s annual growth rate is now expected to fall short of the 1.5% forecast made in February,” Bank of Korea (BOK) Governor Rhee Chang-yong told reporters. “The tightening of tariff policies, which is much stronger than initially projected, will likely further weigh on growth prospects. “Political uncertainty has dragged on longer than expected, delaying the recovery of economic sentiment”. Sluggish domestic demand, along with unprecedented factors such as large-scale wildfires which tore through swaths of the country’s southeast late March, had also contributed to the downturn, Rhee said. The BOK held its interest rate steady at 2.75% yesterday, its third straight decision to keep rates unchanged after a 0.25 percentage point cut in February. Given the “significant uncertainty” due to US tariffs and the government’s push for economic stimulus, “the board judged it appropriate to keep the base rate unchanged for now while closely assessing changes in domestic and external conditions”. He said tariff-related “uncertainty” has grown to an “unprecedented level”. “The intensity of US tariff policies and the swift shifts in responses from major economies are evolving so rapidly that it is currently difficult to even establish a baseline scenario for forecasts.” – AFP

how things evolve. “Tariffs are highly likely to generate at least a temporary rise in inflation,” the Fed chief told the Economic Club of Chicago, adding that the inflationary effects “could also be more persistent”. He added: “You’ll probably see continued volatility.” Chris Weston at Pepperstone said: “Powell has again frustrated some, who perhaps optimistically felt he might change the messaging from his recent communique and to open the door to cuts in the June (policy) meeting, a factor that is priced at 80% by interest rate swaps traders.” The World Trade Organisation warned on Wednesday of “severe negative consequences” for the world because of the trade war, with boss Ngozi Okonjo-Iweala saying she was “very concerned” and that China-US volumes could collapse as much as 81%. Oil prices extended gains after Washington on Wednesday sanctioned a second China-based “teapot” refinery for purchasing Iranian crude as it continues its “maximum pressure” campaign against Tehran. The State Department said the measures against Shandong Shengxing Chemical were part of the US president’s campaign to “drive Iran’s illicit oil exports” to zero. – AFP “The volatility in both the equity and bond markets could also push investors to increase the weighting of gold within their portfolio,” Global X analyst Trevor Yates said. “We maintain our bullish stance on gold, though a pull-back towards US$3,050 per ounce looks possible after a recent swift price rally,” analysts at ANZ noted. Spot silver dipped 1.4% to US$32.28 an ounce, platinum shed 0.7% to US$960.92, and palladium fell 1.9% to US$953. – Reuters

o Asian stocks rise despite Powell’s warning on impact of levies HONG KONG: Tokyo led Asian stocks higher yesterday as optimism over Japan-US trade talks offset Federal Reserve boss Jerome Powell’s warning that Donald Trump’s tariffs could force officials to choose between fighting inflation or unemployment. Investors are keeping a nervous eye on Washington for the next three months as governments scramble to cut deals to avert crippling tariffs the US president unveiled on his April 2 “Liberation Day” but then delayed for 90 days. With Japanese companies the biggest investors into the United States, Tokyo’s negotiations are of particular interest to markets – with some describing it as the canary in the coal mine – and traders took heart from early signs. Trump posted on social media that there had been “Big Progress!” and Tokyo’s envoy Ryosei Akazawa said: “I understand that the US wants to make a deal within the 90 days. For our

And while Japan’s Prime Minister Shigeru Ishiba warned that the talks “won’t be easy”, he said the president had “expressed his desire to give the negotiations ... the highest priority”. Hopes that Trump’s blistering tariffs can be pared back have helped temper some of the disquiet on markets after a rout at the start of the month fuelled by talk of a global recession and an upending of historic trading norms. Some have said there were rumblings that the target of his most painful measures could be open to dialogue, with Bloomberg reporting that China wants to see some measures beforehand, including reining in some cabinet members’ anti-Beijing comments. Shares in Tokyo rose more than 1% with Hong Kong, Singapore and Mumbai, while Shanghai, Sydney, Seoul, Wellington, Bangkok and Jakarta were also up. Taipei edged down along with London, Paris and Frankfurt. However, uncertainty continues to prevail on trading floors after a selloff on Wall Street – and gold hitting a fresh record above US$3,357 – sparked by Powell’s warning over the impact of the tariffs. He said that, while the Fed’s employment and inflation goals were largely in balance at this point, policymakers could find themselves in the “challenging scenario” depending on

Profit-booking pulls gold off all-time high BERLIN: Gold prices retreated yesterday as investors booked profits after bullion hit an all-time high, with traders assessing tariff negotiations between the US and Japan. “The retreat is largely driven by short-term profit-taking following the sharp rally over the past week. A temporary stabilisation in US bond yields and a modest recovery in the US dollar have also added to the pressure,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany. Spot gold was down 0.8% to US$3,317.63 an ounce, as of 0717 GMT (RM3.17pm in Malaysia). Bullion has gained over 2% so far this week. US gold futures shed 0.5% to US$3,330.60. Bullion hit a record high of US$3,357.40 earlier in the session and has risen more than 27% so far this year. “Markets are now in a wait-and-see mode ahead of further clarity on tariff policies and central bank commentary, prompting some investors to lock in gains.”