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)
Short Url
Updated 17 April 2025
Follow

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

 

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 — we follow the government’s directions to the letter,” Nvidia said.
“The technology industry supports America when it exports to well-known companies worldwide — 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 — an Nvidia supplier — 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.
 


Moderna pulls application for COVID-flu combination shot

Updated 47 sec ago
Follow

Moderna pulls application for COVID-flu combination shot

Moderna pulls application for COVID-flu combination shot
The combination shot comprises a new COVID vaccine and an influenza vaccine
The company has previously said it does not expect a delay in the FDA’s decision

NEW YORK: Moderna said on Wednesday it has withdrawn an application seeking approval for its flu and COVID combination vaccine candidate to wait for efficacy data from a late-stage trial of its influenza shot, which is due later this year.

The company said it pulled the application in consultation with the US Food and Drug Administration. It is the latest sign of increased regulatory scrutiny of the vaccine approval process since Robert F. Kennedy Jr. took the top US health job earlier this year.

Moderna’s decision comes a day after the US FDA said it would require new clinical trials for approval of annual COVID-19 boosters for healthy people under 65.

The combination shot comprises a new COVID vaccine and an influenza vaccine, both under development by Moderna.

The company has previously said it does not expect a delay in the FDA’s decision for the next-generation COVID vaccine, which is due by the end of the month.

Shares of the company have been battered by declining COVID revenue as well as investor concerns spurred by the appointment of Kennedy, who is a vaccine skeptic, as secretary of the US Department of Health and Human Services.

Moderna has been banking on revenue from newer mRNA shots to make up for falling sales of its COVID vaccine and less-than-expected uptake of its respiratory syncytial virus vaccine, which sent its shares down nearly 60 percent last year.

The company in early May pushed back the time frame for the likely approval of its combination vaccine — meant to protect adults aged 50 and above against both COVID-19 and influenza — to 2026.

The FDA last week approved rival Novavax’s COVID-19 vaccine more than a month after missing the deadline for the shot’s approval, and limited its use to people with conditions that put them at risk due to the illness.

Germany defends EU-Israel deal as ‘important forum’ for talks

Germany defends EU-Israel deal as ‘important forum’ for talks
Updated 55 min 40 sec ago
Follow

Germany defends EU-Israel deal as ‘important forum’ for talks

Germany defends EU-Israel deal as ‘important forum’ for talks
  • EU foreign affairs chief Kaja Kallas said “a strong majority” of the 27 member states had backed the review
  • Kornelius reiterated Germany’s “great concern at the humanitarian situation in Gaza“

BERLIN: Germany on Wednesday defended an EU-Israel cooperation deal, a day after the bloc had ordered a review of it in a bid to pressure Israel over the Gaza war.

Without explicitly confirming media reports that Berlin had opposed the review, foreign ministry spokesman Christian Wagner said that “the EU-Israel Association Agreement is an important forum that we must use in order to discuss critical questions” over the situation in Gaza.

The review announced on Tuesday comes as some European nations take a tougher line with Israel over the devastating impact of its offensive in Gaza and the humanitarian crisis unfolding in the territory.

EU foreign affairs chief Kaja Kallas said “a strong majority” of the 27 member states had backed the review.

Diplomats said 17 EU states pressed for the review under an article of the agreement that calls for a respect for human rights, with the Netherlands spearheading the latest push.

On Monday the leaders of Britain, France and Canada condemned Israel’s “egregious actions” in Gaza and warned of joint action if it did not halt its heightened military offensive there.

On Wednesday Stefan Kornelius, spokesman for Chancellor Friedrich Merz, reiterated Germany’s “great concern at the humanitarian situation in Gaza” but stopped short of mentioning any possible further action.

Wagner also confirmed that on Tuesday nine German nationals had been evacuated from Gaza “in close co-ordination with the Israeli government,” together with three of their immediate family members.


Indian Navy inducts first vessel built in ancient shipbuilding style

Indian Navy inducts first vessel built in ancient shipbuilding style
Updated 21 May 2025
Follow

Indian Navy inducts first vessel built in ancient shipbuilding style

Indian Navy inducts first vessel built in ancient shipbuilding style
  • Ship design is based on 5th-century artwork found in Ajanta Caves
  • The ship’s first transoceanic voyage is planned from Gujarat to Oman

New Delhi: The Indian Navy inducted on Wednesday its first vessel constructed using traditional shipbuilding techniques dating back to the 5th century.

The 21-meter wooden ship is a stitched ship, a type of boat that is carvel-built, with its planks stitched together using cords or ropes. The technique was popular in ancient India in constructing ocean-going vessels.

Named Kaundinya, the ship is a recreation of a vessel inspired by a painting from the Ajanta Caves — a UNESCO World Heritage Site in Maharashtra state, where ancient Buddhist rock-cut monuments feature exquisite murals dating from the 2nd century B.C.E. to the 5th century C.E.

“The whole concept was to kind of connect to our ancient methodology of how the construction takes place and also, subsequently, connect to the historical maritime routes which Indian seafarers took during that particular time,” Cdr. Vivek Madhwal, spokesperson of the Indian Navy, told Arab News.

Funded by the Ministry of Culture, the project was launched in July 2023 and constructed by artisans from Kerala, who were led by master Indian shipwright Babu Sankaran. The vessel was completed in February this year.

The INSV Kaundinya’s induction into the Indian Navy took place in the presence of Culture Minister Gajendra Singh Shekhawat at the Naval Base Karwar in Karnataka, on the country’s western coast along the Arabian Sea.

The ship will sail its first transoceanic voyage from Gujarat to Oman.

“That is one of the routes which was used by the ancient seafarers,” Madhwal said, adding that new routes will be considered in the future, after the first journey.

The Indian Navy collaborated with the Department of Ocean Engineering at the Indian Institute of Technology-Madras to conduct model testing of the vessel’s hydrodynamic behavior at sea. The navy has also tested the wooden mast system, which was constructed without the use of contemporary materials.

“Every aspect of the ship had to balance historical authenticity with seaworthiness, leading to design choices that were both innovative and true to the maritime traditions of ancient India,” the Indian Ministry of Defense said in a statement.

“The combination of a stitched hull, square sails, wooden spars, and traditional steering mechanisms makes the vessel unlike any ship currently in naval service anywhere in the world.”


Saudi hospitality reaches Dhaka as immigration officers assist Hajj pilgrims

Saudi hospitality reaches Dhaka as immigration officers assist Hajj pilgrims
Updated 15 min 24 sec ago
Follow

Saudi hospitality reaches Dhaka as immigration officers assist Hajj pilgrims

Saudi hospitality reaches Dhaka as immigration officers assist Hajj pilgrims
  • Saudi Arabia launched Makkah Route initiative for Bangladeshi pilgrims in 2019
  • About 87,000 Bangladeshis are expected to travel to Kingdom for Hajj this year

DHAKA: Bangladeshi pilgrims are enjoying the care and attention of dozens of Saudi officers who under the Makkah Route initiative are working around the clock at Dhaka’s main airport to ensure smooth immigration for Hajj.

About 87,000 Bangladeshi pilgrims are expected to perform the spiritual journey that is one of the five pillars of Islam. This year, the Hajj is expected to start on June 4 and end on June 9.

Most of the pilgrims are departing under the flagship pre-travel program, which the Kingdom launched in 2019 to help pilgrims meet all the visa, customs and health requirements at their airport of origin and save them long hours of waiting before and on arrival in the Kingdom. 

“It’s a very pleasant experience for the pilgrims as they receive the heartiest welcome by the Saudi immigration officials,” Lokman Hossain, director of the Hajj Office at the Ministry of Religious Affairs, told Arab News on Wednesday.   

“The immigration officials here serve the pilgrims very gently and always with a welcoming smile. It’s something that they can anticipate as the Kingdom’s hospitality for Hajj pilgrims … This is something extraordinary, and offers the pilgrims a comfort in their journey to the holy places.”

Bangladesh is among seven Muslim-majority countries — including Pakistan, Malaysia, Indonesia, Morocco, Turkiye and Cote d’Ivoire — where Saudi Arabia is operating its Makkah Route initiative.

“The moment pilgrims enter into the airport, their Saudi immigration formalities are taken care of by the immigration staffers stationed here temporarily by the Kingdom’s authorities,” Hossain said. 

“There is no need to wait in any queues. Saudi immigration officials are offering instant services to our pilgrims with more than a dozen service counters. Women immigration staffers are also deployed here, which brings ease for our women pilgrims also.” 

The moment they enter the Makkah Route facilities at the airport, the pilgrims are “treated like distinguished guests,” he added. 

“Sometimes, the pilgrims receive greetings in their local language too. It creates a sense of comfort in the pilgrims’ minds.” 

Special pilgrimage flights from Dhaka started in late April, as many pilgrims arrive early to make the most of the once-in-a-lifetime opportunity to fulfill their religious duty. More than 51,400 Bangladeshi pilgrims have already traveled to the Kingdom as of Tuesday. 

“Makkah Route initiative is a very significant and helpful offer for our pilgrims,” Hossain said. “Our pilgrims are enjoying this facility.” 


Indian Navy inducts first vessel built in ancient shipbuilding style

Indian Navy inducts first vessel built in ancient shipbuilding style
Updated 21 May 2025
Follow

Indian Navy inducts first vessel built in ancient shipbuilding style

Indian Navy inducts first vessel built in ancient shipbuilding style
  • Ship design is based on 5th-century artwork found in Ajanta Caves
  • The ship’s first transoceanic voyage is planned from Gujarat to Oman

NEW DELHI: The Indian Navy inducted on Wednesday its first vessel constructed using traditional shipbuilding techniques dating back to the 5th century.

The 21-meter wooden ship is a stitched ship, a type of boat that is carvel-built, with its planks stitched together using cords or ropes. The technique was popular in ancient India in constructing ocean-going vessels.

Named Kaundinya, the ship is a recreation of a vessel inspired by a painting from the Ajanta Caves — a UNESCO World Heritage Site in Maharashtra state, where ancient Buddhist rock-cut monuments feature exquisite murals dating from the 2nd century B.C.E. to the 5th century C.E.

“The whole concept was to kind of connect to our ancient methodology of how the construction takes place and also, subsequently, connect to the historical maritime routes which Indian seafarers took during that particular time,” Cdr. Vivek Madhwal, spokesperson of the Indian Navy, told Arab News.

Funded by the Ministry of Culture, the project was launched in July 2023 and constructed by artisans from Kerala, who were led by master Indian shipwright Babu Sankaran. The vessel was completed in February this year.

The INSV Kaundinya’s induction into the Indian Navy took place in the presence of Culture Minister Gajendra Singh Shekhawat at the Naval Base Karwar in Karnataka, on the country’s western coast along the Arabian Sea.

The ship will sail its first transoceanic voyage from Gujarat to Oman.

“That is one of the routes which was used by the ancient seafarers,” Madhwal said, adding that new routes will be considered in the future, after the first journey.

The Indian Navy collaborated with the Department of Ocean Engineering at the Indian Institute of Technology-Madras to conduct model testing of the vessel’s hydrodynamic behavior at sea. The navy has also tested the wooden mast system, which was constructed without the use of contemporary materials.

“Every aspect of the ship had to balance historical authenticity with seaworthiness, leading to design choices that were both innovative and true to the maritime traditions of ancient India,” the Indian Ministry of Defense said in a statement.

“The combination of a stitched hull, square sails, wooden spars, and traditional steering mechanisms makes the vessel unlike any ship currently in naval service anywhere in the world.”