Weekly Buzz: Chips on the table: How new trade rules could reshape tech 🖥️

5 minute read

When governments change the rules of trade, it can ripple through industries – and your portfolio. Last week, Washington announced two moves that could reshape the semiconductor sector, the building block for everything from cars to cloud computing.

What’s going on here?

First came President Trump’s 100% tariff threat on imported chips, sparing only those deemed “American enough.” That exemption sent shares of firms with major US manufacturing bases surging, while smaller, import-reliant players were left scrambling. Apple’s stock rose 3% after pledging another US$100 billion to domestic production.

Here’s where it gets messy: what exactly does "built in the US" mean when a single chip involves hundreds of components from dozens of countries? With US factories supplying just 12% of global output for semiconductors, any sudden shift could lift prices well before new capacity comes online.

Then came the “pay-to-play” deal: Nvidia and AMD can keep selling AI chips to China, but must hand 15% of those revenues to the US government. Investors took it in stride – better 85% of a market than none – but it’s a deal that blurs the line between export controls and revenue collection.

What does this mean for you?

Together, these moves tilt tech toward a more politically driven playing field. US companies with deep pockets and political leverage could consolidate their lead, while smaller players risk being priced out — and that dynamic may spill over into other industries.

That’s why diversification remains critical. If you're invested in tech through broad market funds, you're likely already exposed to these global champions. These latest shifts are a reminder that policy risk is just as real as market risk — a portfolio that’s built across regions and sectors is better equipped to both ride out the turbulence, and capture the opportunities.

For a portfolio designed to handle these shifts in tech and trade, check out General Investing.

💡 Investors’ Corner: What is shariah investing?

It’s a common misconception that shariah-compliant portfolios are only for Muslim investors. In reality, they share much in common with other values-based approaches, such as environmentally sustainable investing, but with a clear and consistently applied rules-based framework.

At its core, shariah investing avoids interest-bearing instruments, excessive uncertainty, and sectors such as alcohol and gambling. Companies are also screened by how they’re run, with limits on debt and leverage forming part of the assessment.

Innovations like blockchain-enabled sukuk, tokenised Islamic funds, and green, asset-backed structures are making investing more accessible and transparent. The momentum speaks for itself: analysts expect global Islamic finance assets to grow from US$8 billion in 2024 to US$14 billion by 2029.

While the guidelines are specific, the goal is the same as any sound investment strategy: to build your financial future while staying true to your principles. Whether you follow these rules for faith, ethics, or to add another layer of diversification, shariah portfolios are a way to invest with intention.

(If you’re looking for access to global assets fully certified to meet shariah principles, check out our newly launched Shariah Global Portfolios.)

🎓 Simply Finance: Policy risk

Policy risk is the chance for government decisions to impact investments. This differs from market risk, which stems from economic forces like supply and demand. If the government bans a product, that's policy risk, if customers simply stop buying it due to changing preferences, that's market risk.

📺 In the Press

We’ve been named one of CNBC’s World’s Top Fintech Companies – for the third year in a row. 

It's a recognition that we don’t take lightly. This wouldn’t have been possible without your trust – and it inspires us to keep raising the bar. Thanks for being with us on this journey!