NOVEMBERASIA BUSINESS OUTLOOK8NEWSROOMCHINA CONTINUES PAUSE ON EV INVESTMENTS IN EUIntel will lose its spot in the Dow Jones Industrial Average after a 25-year run to Nvidia, S&P Dow Jones Indices said on Friday, the latest blow to the struggling chipmaker that was among the first two technology firms to be included in the blue-chip index.Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI.Intel's shares have declined 54 per cent this year, making it the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow.The stock fell about 1 per cent in extended trading on Friday, while Nvidia was up 1.5 per cent.Launched in 1968, the Silicon Valley pioneer sold memory chips before switching to processors that helped launch the personal computer industry.In the 1990s, "Intel Inside" stickers turned commodity electronic components into premium products, and eventually became ubiquitous on laptops.Nvidia has emerged as a cornerstone of the global semiconductor industry, thanks to the essential role its chips play in powering generative AI technologies which has driven a seven-fold surge in its shares over the past two years.The company's shares have risen more than two-fold this year alone. Two people briefed on the matter said China has told its automakers to halt major investments in European countries that support extra tariffs on Chinese-built electric vehicles, a move likely to further divide Europe. The new European Union tariffs of up to 45.3 percent came into effect on Wednesday after a year-long investigation that divided the bloc and prompted Beijing's retaliation.Ten EU members, including France, Poland, and Italy, supported tariffs in a vote this month, five members, including Germany, opposed them, and 12 abstained.Chinese automakers including BYD, SAIC, and Geely were told at a meeting held by the Ministry of Commerce on Oct. 10 that they should pause their heavy asset investment plans such as factories in countries that backed the proposal, said the people.Several foreign automakers also attended the meeting, where the participants were told to be prudent about their investments in countries that abstained from voting and were "encouraged" to invest in those that voted against the tariffs, the people said.The move by Chinese authorities to suspend some investment in Europe would suggest the government is seeking leverage in talks with the EU over an alternative to tariffs, keen to avoid a sharp fall in EV exports to the key market.Europe accounted for more than 40 percent of EVs shipped from China in 2023, according to Reuters' calculations using data from the China Passenger Car Association. INTEL LOSES ITS SPOT IN DOW JONES INDUSTRIAL AVERAGE, NVIDIA TO REPLACE IT
< Page 7 | Page 9 >