The US is trying to curb China’s chipmaking industry. Western companies are paying the price.

US President Donald Trump’s tariffs are coming at a steep cost for Western tech players, with policies intended to restrain China, instead, burdening Western players with bns in losses.

More restrictions: AI chimpmaker Nvidia is now required to obtain a license for exporting its high-performance H20 chip to China, The company said in a recent filing (pdf). The restriction — imposed due to concerns that the chips could be used in supercomputing applications — also includes AMD’s MI308 chip and its equivalents.

The restrictions also reportedly blindsided major Chinese cloud providers, who were expecting H20 chip deliveries by year-end. Nvidia could lose the USD 18 bn orders secured this year from China’s huge market, which generated USD 17 bn in revenues in the chipmaker’s FY that ended on 26 January.

Less money for chipmakers: The added restrictions and back-and-forth tariffs are estimated to charge Nvidia an additional USD 5.5 bn quarterly starting 2026, the company said. Nvidia’s shares fell some 7% yesterday on the news, bringing its YTD losses to over 24%, while AMD’s dropped 7%.

The impact extends beyond Nvidia and AMD: New export controls could also inflict over USD 1 bn a year in annual costs on US semiconductor equipment manufacturers, Reuters reported on Tuesday, citing two sources it said are in the know. Industry estimates peg annual revenue losses at USD 350 mn each for three of the largest US chip equipment firms — Applied Materials, Lam Research, and KLA — the newswire said.

Adding to older woes: To curb China’s chipmaking industry, the former US administration issued successive export controls on advanced semiconductor manufacturing equipment to China, which erased USD bns in revenues from US chipmakers. Despite the reciprocal tariff pause, the current administration started a probe into chipmakers’ imports, and is planning additional duties on the industry.

European players are feeling the heat as well: The Netherlands’ ASML fell short of marketexpectations by nearly EUR 1 bn in fresh orders, blaming growing uncertainty following the US tariff announcements.

Market reax: Shares of the Dutch tech multinational have lost 16% since January, with 6.2% alone in early trading on Wednesday. The “increased uncertainty in the macro environment” is likely to persist for some time, ASML’s CEO Christophe Fouquet told the Financial Times.

MARKETS THIS MORNING-

Asian markets are slightly inching up this morning. Hang Seng (Hong Kong) is up 1.2%, while Japan’s Nikkei is up 0.8% and Shanghai Composite is up 0.1%. Wall Street futures are also rising after yesterday’s tech selloff.

THE CLOSING BELL-

The ADX fell 0.3% yesterday on turnover of AED 1 bn. The index is down 1.7% YTD.

In the green: Julphar (+10.9%), Ghitha (+9.0%) and Aram (+8%).

In the red: Sudatel (-6.9%), ADNH Catering (-3.2%), and Burjeel (-2.7%).

Over on the DFM, the index fell 0.5% on turnover of AED 503.3 mn. The index is down 2% YTD. Meanwhile, Nasdaq Dubai was down 0.8%.

CORPORATE ACTIONS-

e& has approved a cash dividend of AED 3.5 bn for 2H 2024, equivalent to 41.5 fils per share, according to an ADX disclosure (pdf). This brings total dividends for FY 2024 to 7 bn, or 83% of the nominal share value, after the firm distributed AED 3.5 bn for 1H 2024.

Amanat approved a AED 40 mn cash dividend for 2H 2024, according to a DFM disclosure (pdf). This brings total dividends for FY 2024 to AED 115 mn, equivalent to 4.6% of the company’s paid-up share capital.

Deyaar approved the distribution of AED 218.8 mn in cash dividends for 2024, equivalent to 5% of share capital, with payment set for 7 May, according to a DFM disclosure (pdf).

Dubai Investments will pay AED 765.4 mn in dividends for 2024, equivalent to 18% of its capital, according to a DFM disclosure (pdf). The payout was approved during the annual general assembly with payment scheduled for 14 May.

Agility to implement share buyback to incentivize employees: Agility Global approved a share option plan (SOP) that includes the potential buyback of up to 1.04 bn shares, according to an ADX disclosure (pdf). The program aims to offer certain employees the opportunity to acquire shares as an incentive. Shares may be acquired via market purchases, off-market transactions, or a combination of both, at prices ranging from AED 0.5 to AED 5 per share.

What’s next? The size and allocation of the SOP will be decided later by the company’s nominations and remuneration committee, following approval from the ADX. The plan may also include alternative settlement options such as cash payouts.

Adnoc Distribution approved the distribution of AED 1.3 bn in dividends for 2H 2024, according to an ADX disclosure (pdf). The total amount of paid dividends for 2024 rose to AED 2.6 bn, equivalent to 257.1% of the company’s share capital or 20.6 fils per share.

Dana Gas will distribute AED 384.8 mn in dividends for 2024, representing 5.5% of the company’s nominal capital, according to an ADX disclosure (pdf).