Why Asian equities’ growth will outlast the AI-driven semiconductor cycle - Top1000funds.com

This article explores why Asian equities are poised to outlast the AI-driven semiconductor cycle, attributing their sustained growth not only to global demand for semiconductors but also to the region... Read original →

Asia’s tech equity resilience stems not from the AI semiconductor cycle itself, but from its dense R&D ecosystems and human capital depth. BYD’s 120,000-engineer workforce exemplifies how vertical integration in EVs spills over into SiC semiconductors and battery management systems, catalyzing upstream localization. This closed-loop innovation accelerates adoption in robotics and medical electronics. As U.S. and EU supply chain reshoring inflates compliance costs, Asian firms leverage localized talent to sustain low marginal innovation expenses. Even if AI chip demand softens, cross-sectoral spillovers—like automotive-grade chips migrating into healthcare devices—will provide anti-cyclical buffers over the next 12–24 months. While TSMC (Taiwan, China) retains process leadership, system-level innovation is decisively shifting toward mainland China, cementing a structural growth trajectory.