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Global chipmakers feel the pinch of Trump¡¯s shifting trade policy

Global chipmakers feel the pinch of Trump¡¯s shifting trade policy
An NVIDIA logo is displayed on a building in Taipei, Taiwan, on April 16, 2025. (REUTERS)
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Updated 17 April 2025

Global chipmakers feel the pinch of Trump¡¯s shifting trade policy

Global chipmakers feel the pinch of Trump¡¯s shifting trade policy
  • Nvidia has warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China
  • Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market

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Global chip stocks were battered on Wednesday on fresh evidence of how US President Donald Trump¡¯s shifting trade policy was complicating the outlook for semiconductor and computing giants, including AI pioneer Nvidia and its rival AMD.
Attempts to reorient global trade through tariffs and export curbs have started to show the effect as Nvidia warned of a $5.5 billion hit after Washington restricted exports of its AI processor tailored for China, while Dutch chip-making tools giant ASML raised doubts about its outlook.
The US restriction, which also hit the MI308 processor of Advanced Micro Devices, marked the latest blow for the AI chip trade that is losing steam after a two-year rally as tariff threats and fears over Big Tech¡¯s spending weigh on sentiment.
Nvidia shares closed down nearly 7 percent on Wednesday, with the company losing more than $148 billion in market value. AMD fell 5.8 percent as it warned of a $800 million hit from the latest curb, while AI-related chip stocks including Arm, Broadcom and Micron dropped between 2.5 percent and 4.6 percent.
Nvidia said on Wednesday that it follows the US government¡¯s directions on where it can sell its chips after the US Commerce Department announced on Tuesday it was issuing new export licensing requirements for Nvidia¡¯s H20 chips.
¡°The US government instructs American businesses on what they can sell and where ¡ª we follow the government¡¯s directions to the letter,¡± Nvidia said.
¡°The technology industry supports America when it exports to well-known companies worldwide ¡ª if the government felt otherwise, it would instruct us,¡± the company added.




Global stock markets mostly retreated Wednesday after the US government imposed restrictions on exports of a key Nvidia chip to China, the latest trade war salvo between the world's biggest economies. (AFP)

Tightening US export curbs have in recent years made it harder for American chipmakers to tap the Chinese market, but the country remains a key source of revenue.
¡°The US export restrictions on Nvidia¡¯s H20 chips highlight the growing geopolitical uncertainty enveloping the tech and semiconductor sectors, particularly under Trump-era-style policy reversals,¡± said Michael Ashley Schulman, chief investment officer at Running Point Capital.
¡°This unpredictability rattles businesses and investment markets, as evidenced by Nvidia¡¯s selloff this morning and broader pressure across chip stocks.¡±
Nvidia drew over 13 percent of its sales, or about $17 billion, from China in its last financial year, although that was down from 21 percent in fiscal 2023. For AMD, China was its second-largest market last year, accounting for more than 24 percent of total sales.
¡°The H20 portion was about $12 billion or so (of the total China revenue), roughly about 30 cents of earnings per share, not trivial but not enormous in the grand scheme of things,¡± Bernstein analyst Stacy Rasgon said.
¡°H20 performance is low, well below already-available Chinese alternatives; a ban essentially simply hands the Chinese AI market over to Huawei.¡±
Rasgon said the move may have surprised many investors as shares had surged nearly 18 percent last week, partly due to a report that the Trump administration planned to back off from such a curb after CEO Jensen Huang attended a Mar-a-Lago dinner.
The company had earlier this week unveiled plans to build AI servers worth as much as $500 billion in the US over the next four years, a move largely seen as an overture to Trump.
Trump has for now exempted semiconductors and some other electronics from his tariffs, but he has warned that sector-specific levies will be announced in the coming weeks.
Such tariffs could cost US semiconductor equipment makers more than $1 billion a year, Reuters reported on Tuesday.

NVIDIA fallout
News of the latest export curb on Nvidia sparked a selloff in chip companies and its suppliers across the globe.
In South Korea, Samsung closed down about 3 percent, while SK Hynix closed 4 percent lower.
European chipmakers ASM International and Infineon Technologies fell more than 2 percent, while Japanese chip-testing equipment maker Advantest ¡ª an Nvidia supplier ¡ª was the Nikkei¡¯s second-worst performer with a 5 percent tumble.

Still, some analysts said Nvidia¡¯s overall sales have continued to surge even as the China contribution slows while chip demand remains strong from big cloud companies.
¡°While we acknowledge the likely impact to near-term numbers, we would stress that Blackwell shipments to core hyperscale customers remains the driver of fundamentals,¡± TD Cowen analysts said, referring to Nvidia¡¯s latest line of AI systems.
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Germany¡¯s Rheinmetall to produce shells at new plant in Ukraine, Kyiv says

Updated 21 sec ago

Germany¡¯s Rheinmetall to produce shells at new plant in Ukraine, Kyiv says

Germany¡¯s Rheinmetall to produce shells at new plant in Ukraine, Kyiv says
Kyiv is seeking help from its Western partners to scale up its domestic arms industry

KYIV: German arms giant Rheinmetall plans to manufacture artillery shells for Ukrainian forces at a future production plant in Ukraine, Kyiv¡¯s defense minister said on Thursday.
¡°On September 9, land was allocated in a safe region of Ukraine, where a new plant will be built to manufacture Rheinmetall shells for the needs of the Defense Forces,¡± Denys Shmyhal wrote on X.
Kyiv is seeking help from its Western partners to scale up its domestic arms industry as it fends off Russian forces in the fourth year of Moscow¡¯s invasion.

Duterte defense team urges ICC case shelved on health grounds

Duterte defense team urges ICC case shelved on health grounds
Updated 36 min 37 sec ago

Duterte defense team urges ICC case shelved on health grounds

Duterte defense team urges ICC case shelved on health grounds
  • The ICC ruled earlier this week to adjourn that hearing while judges assessed Duterte¡¯s health
  • Duterte ¡°is not fit to stand trial as a result of cognitive impairment in multiple domains,¡± wrote Kaufman in a legal filing

THE HAGUE: The defense lawyer for Rodrigo Duterte Thursday urged the International Criminal Court to shelve its crimes against humanity case against the former Philippines president, who he said was mentally unfit for trial.
Duterte, 80, was scheduled to appear at the ICC on September 23 to hear charges over his years-long campaign against drug users and dealers that rights groups say killed thousands.
The ICC ruled earlier this week to adjourn that hearing while judges assessed Duterte¡¯s health, but lawyer Nicholas Kaufman urged the case be shelved indefinitely.
Duterte ¡°is not fit to stand trial as a result of cognitive impairment in multiple domains,¡± wrote Kaufman in a legal filing published Thursday on the ICC website.
¡°Mr Duterte¡¯s condition will not improve and, for this reason, the Pre-Trial Chamber must adjourn all legal proceedings in his case indefinitely,¡± he added.
The former leader is suffering from ¡°significant cognitive deficiencies¡± affecting his memory, his day-to-day functioning, and his capacity for complex reasoning, according to Kaufman.
Duterte was arrested in Manila on March 11, flown to the Netherlands that same night and has been held at the ICC¡¯s detention unit at Scheveningen Prison since.
At his initial hearing, he followed by video link, appearing dazed and frail, barely speaking.
He is the first Asian former head of state charged by the ICC. He stands accused of 43 murders as a crime against humanity.
The ICC prosecutor¡¯s application for his arrest said Duterte¡¯s alleged crimes were ¡°part of a widespread and systematic attack directed against the civilian population¡± in the Philippines.
¡°Potentially tens of thousands of killings were perpetrated,¡± the prosecutor alleged of the campaign that targeted mostly poor men, often without proof they were linked to drugs.
Kaufman said his client¡¯s mental faculties had declined to the point where he was unable to understand the accusations against him or defend himself in court.
A lawyer for victims of Duterte¡¯s ¡°war on drugs¡± has voiced anger over the ICC¡¯s postponement of the hearing originally scheduled for September 23.
¡°We expected that Duterte would do this, but the fact that he was able to convince the pre-trial chamber to postpone that indefinitely is scary,¡± Kristina Conti told AFP.


South Sudan vice president charged with murder, crimes against humanity: justice minister

South Sudan vice president charged with murder, crimes against humanity: justice minister
Updated 39 min 10 sec ago

South Sudan vice president charged with murder, crimes against humanity: justice minister

South Sudan vice president charged with murder, crimes against humanity: justice minister
  • The charges relate to an attack in March by a militia known as the White Army, which the government claims was acting under the orders of Machar
  • ¡°These crimes were marked by gross violations of the Geneva Conventions and international humanitarian law,¡± Akech said

JUBA: South Sudan¡¯s Vice President Riek Machar has been charged with murder, treason and crimes against humanity over an attack on a military base that killed more than 250 soldiers, the justice minister said Thursday.
The charges relate to an attack in March by a militia known as the White Army, which the government claims was acting under the orders of Machar.
He has been under house arrest for months as part of a power struggle with his long-time rival, President Salva Kiir.
¡°These crimes were marked by gross violations of the Geneva Conventions and international humanitarian law, including the desecration of corpses, persecution of civilians, and attacks on humanitarian workers,¡± Justice Minister Joseph Geng Akech said, according to a read-out provided to reporters in Juba.
The military base in Nasir, in northeastern South Sudan, was overrun by the so-called White Army, which refers to a loose band of armed youths from the same ethnic Nuer community as Machar, between March 3 and 7.
It was known that several senior officers including a general died in the attack, but the government had not previously stated that more than 250 soldiers were killed.
A United Nations helicopter also came under fire while attempting to rescue soldiers at the base, leading to the death of a pilot.


President seeks end to crisis engulfing Nepal

President seeks end to crisis engulfing Nepal
Updated 11 September 2025

President seeks end to crisis engulfing Nepal

President seeks end to crisis engulfing Nepal
  • President Ramchandra Paudel appealed to ¡°all parties to be confident that a solution to the problem is being sought, as soon as possible¡°
  • Army chief General Ashok Raj Sigdel has launched talks with key figures and ¡°representatives of Gen Z,¡± a military spokesperson said

Katmandu: Nepal¡¯s president said Thursday he was seeking an end to the crisis that has engulfed the Himalayan nation since deadly protests this week ousted the prime minister and left parliament in flames.
The army has imposed a curfew in the Himalayan nation of 30 million people, with soldiers patrolling the largely quiet streets for a second day after the worst violence in two decades.
President Ramchandra Paudel appealed to ¡°all parties to be confident that a solution to the problem is being sought, as soon as possible.¡±
Army chief General Ashok Raj Sigdel has launched talks with key figures and ¡°representatives of Gen Z,¡± a military spokesperson said, referring to the loose umbrella title of the youth protest movement.
Demonstrations began on Monday in Katmandu against the government¡¯s short-lived ban on social media and over corruption, with at least 19 people killed in the crackdown.
A day later, protests escalated into an outpouring of rage nationwide, with government offices, a Hilton Hotel and other buildings set on fire.
In the chaos, more than 13,500 prisoners broke out of jails countrywide, leaving security forces scrambling to regain control. Only around 250 have been recaptured, according to Nepal¡¯s security forces and an Indian border official.
¡°Our first demand is the dissolution of parliament,¡± Sudan Gurung, a key figure among the Gen Z protesters, told reporters on Thursday.
¡°My humble request to everyone, including political parties: please don¡¯t send the same old leaders,¡± he said, saying the protesters were not seeking power themselves.
¡°We don¡¯t need positions in government,¡± he said. ¡°We need real reform.¡±
Protests fed into longstanding economic woes in Nepal, where more than a fifth of people aged 15-24 are unemployed, according to the World Bank, with GDP per capita just $1,447.

- ¡®Every effort¡¯ -

KP Sharma Oli, 73, a four-time prime minister, resigned Tuesday. His home was set ablaze the same day and his whereabouts are unknown.
Constitutionally, 80-year-old Paudel should invite the leader of the largest parliamentary party to form a government.
But much of the political old guard has vanished from view.
¡°I am consulting and making every effort to find a way out of the current difficult situation in the country, within the constitutional framework,¡± said Paudel, whose presidential offices were also set on fire.
Former chief justice Sushila Karki is the leading choice for interim leader, a Gen Z protester representative said Thursday, although their backing is not unanimous.
¡°Right now, Sushila Karki¡¯s name is coming up to lead the interim government ¡ª we are now waiting for the president to make a move,¡± said Rakshya Bam, an activist who was among those at the army meeting on Wednesday.
Journalist Pranaya Rana said there were ¡°divisions,¡± but it was ¡°natural in a decentralized movement like this that there are going to be competing interests.¡±
Karki, 73, Nepal¡¯s first woman chief justice, has told AFP that ¡°experts need to come together to figure out the way forward,¡± and that ¡°the parliament still stands.¡±
Katmandu Mayor Balendra Shah, a 35-year-old former engineer and rapper, was also among the names suggested as a potential interim leader.
But Shah said in a post on Facebook that he ¡°fully supports the proposal¡± of Karki.
¡°The job of this interim government is to hold elections, to give a new mandate to the country,¡± he said.


South Korean workers detained in immigration raid headed to Atlanta for flight home

South Korean workers detained in immigration raid headed to Atlanta for flight home
Updated 11 September 2025

South Korean workers detained in immigration raid headed to Atlanta for flight home

South Korean workers detained in immigration raid headed to Atlanta for flight home
  • The workers had been held at an immigration detention center in Folkston
  • South Korea's President Lee Jae Myung called Thursday for improvements to the United States' visa system

ATLANTA: Buses carrying workers from South Korea who were detained last week in an immigration raid at a battery factory were traveling Thursday from a detention center in southeast Georgia to Atlanta, where a charter plane was waiting to take them home.
More than 300 Koreans were among about 475 workers detained during last week¡¯s raid at the battery factory under construction on the campus of Hyundai¡¯s sprawling auto plant west of Savannah. South Korea¡¯s foreign ministry has said that a Korean Air Boeing 747-8i that arrived in Atlanta on Wednesday will depart at noon Thursday with the workers on board.


The workers had been held at an immigration detention center in Folkston, 285 miles (460 kilometers) southeast of Atlanta. South Korea¡¯s Foreign Ministry confirmed that US authorities have released the 330 detainees ¡ª 316 of them Koreans ¡ª and that they were being driven by bus to Hartsfield-Jackson Atlanta International Airport, where they will board a charter flight scheduled to arrive in South Korea on Friday afternoon. The group also includes 10 Chinese nationals, three Japanese nationals and one Indonesian.
South Korea¡¯s President Lee Jae Myung called Thursday for improvements to the United States¡¯ visa system, saying Korean companies will likely hesitate to make new investments in the US until that happens.
South Korean officials have said they were negotiating with the US to win ¡°voluntary¡± departures for the workers, rather than deportations, which could make them ineligible to return to the US for up to 10 years.
During a visit to Washington, South Korean Foreign Minister Cho Hyun met with US Secretary of State Marco Rubio and told him that his people were left with ¡°big pains and shocks¡± because the video of the workers¡¯ arrests was publicly disclosed, the ministry said in a statement.
Cho called for the US administration to help the workers leave as soon as possible ¡ª without being handcuffed ¡ª and to ensure they do not face problems in future reentry to the US, the statement said.