By Asia’s semiconductor leaders spearheaded a regional tech rally, with TSMC (Taiwan) and Samsung Electronics (Korea) surging 6% and 5%, respectively, as demand for AI and 5G chips hit record highs. The MSCI Asia Tech Index climbed 3.8%, outpacing the broader market’s 2.1% gain.
Sector Breakdown:
- TSMC: Secured orders from Apple and NVIDIA for its 2nm chips, slated for 2026 iPhones and AI servers.
- Samsung: Approved for a $30B U.S. chip fab expansion in Texas, easing geopolitical risks.
- Tata Electronics (India): Jumped 12% after winning Google’s contract for next-gen Pixel smartphone chips.
Competitive Pressures:
- U.S. Export Curbs: New restrictions on advanced chip sales to China could dent TSMC’s Q3 revenue by 5-7%.
- Valuation Warnings: Asia tech P/E ratios hit 25x, well above the 10-year average of 18x.
Strategic Moves:
- Japan’s Rapidus: Partnered with IBM to launch 2nm chips by 2027, challenging TSMC’s dominance.
- China’s SMIC: Ramping up 14nm production, but lags 3-5 years behind global rivals.
Expert Take:
“The AI chip race is Asia’s to lose,” said Bernstein’s Mark Li. “But U.S. policies could fragment supply chains.”