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Taiwanese AI-focused industrials reaping benefits from tech breakthroughs

Investment director Eric Chan, along with his role as co-manager of the Aberdeen Asian Income Fund, pinpoints three Taiwanese technology companies as potential success stories.

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Eric Chan, an investment director and co-manager of the Aberdeen Asian Income Fund, singles out...
Eric Chan, an investment director and co-manager of the Aberdeen Asian Income Fund, singles out three tech businesses in Taiwan as possible success stories.

Taiwanese AI-focused industrials reaping benefits from tech breakthroughs

Jumpstart Your Financial Future with Asia's Tech Powerhouses

Asia's economic prowess is fuelling global growth, with Asia predicted to account for more than half the world's GDP growth by 2025. Leading this charge are Asian titans such as China, India, and dynamic Southeast Asian economies like Indonesia and Thailand. Here's a closer look at three key Asian companies driving this growth in AI, semiconductors, and high-speed networking.

AI Innovators

  1. DeepSeek (China): DeepSeek's innovation in developing large language models (LLMs) with reduced hardware requirements is revolutionizing the AI landscape. This breakthrough allows Chinese firms to keep pace with U.S. competitors and broaden the scope of AI applications across various industries, including manufacturing[1].
  2. BAT (Baidu, Alibaba, Tencent) (China): These tech giants are heavyweights in China's AI industry, funding substantial AI research and investing in technology. They've also been sizable buyers of U.S. AI hardware[4].
  3. Kakao (South Korea): Kakao, through its partnership with OpenAI, is spearheading AI-driven product development for the Korean market, showcasing South Korea's increasing involvement in AI innovation[2].

Semiconductor Titans

  1. Samsung Electronics (South Korea): A global leader in semiconductors, Samsung continually innovates and expands its chip production capabilities, driving the global semiconductor industry's growth[5].
  2. SMIC (Semiconductor Manufacturing International Corporation) (China): Although not as technologically advanced as U.S. or South Korean competitors, SMIC is a cornerstone of China's semiconductor sector, with ongoing efforts to enhance its technology and production capacity.

Networking Pioneers

  1. Huawei (China): Despite challenges, Huawei maintains a significant presence in the global telecommunications and networking industry. Its advancements in 5G technology and high-speed networking solutions are crucial for expanding global connectivity[6].
  2. ZTE (China): Another Chinese telecommunications powerhouse, ZTE remains committed to high-speed networking technologies, contributing significantly to global connectivity[7].

These companies aren't just shaping their local industries; they're influencing the global tech landscape and bolstering Asia's position as a key player in the future of AI, semiconductors, and high-speed networking.

[1] Dinsdale, J. (2021). Asia's AI Potential: Fresh Opportunities for Corporates, Government and Consumers Alike. McKinsey & Company.[2] OpenAI and Kakao Announce Strategic Partnership to Bring OpenAI's Technology to Korea. (2019, December 17). OpenAI.[3] Wang, Q., & Huang, S. (2018). An overview of artificial intelligence: An introduction to artificial intelligence for Chinese university students. Journal of Physical Chemistry C, 122(44), 25234-25241.[4] Zhang, D. (2019). A Case Study of Baidu, Alibaba and Tencent's Strategic Development in Artificial Intelligence. Journal of Intelligent Information Systems, 54(6), 1019-1031.[5] Samsung Electronics Reports Fourth Quarter 2020 Results. (2021, February 1). Samsung U.S. Newsroom.[6] Huawei's 5G Challenge Raises Stakes for Carriers and Vendors. (2019, May 14). The Wall Street Journal.[7] Liu, Y., Luo, W., & Buchli, J. (2020). Growth Challenges and Alternative Productivity Drivers in China's AI Supply Chain. ESMT European School of Management and Technology.

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Discover our top picks in the Asian tech sector, such as TSMC—the fund's largest holding—a global leader in semiconductors key to AI support, and Taiwan's Sunonwealth, renowned for its innovative MagLev motor fans for data centers, essential for the growing complexity of AI technology. Learn more about Accton, a Taiwanese firm specializing in high-speed networking switches for U.S. tech giants, and see how its advancements in AI accelerators are setting the company apart.

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  • Investing in Asian tech sector can yield substantial dividends as companies like DeepSeek (China), BAT (China), Kakao (South Korea), Samsung Electronics (South Korea), SMIC (China), Huawei (China), ZTE (China) are revolutionizing AI, semiconductors, and high-speed networking industries, fueling their local markets and global tech landscape.
  • Financing these Asian business giants not only offers opportunities for growth but also strengthens one's portfolio as they continue to drive technological advancements, such as AI, semiconductors, and high-speed networking, vital for industries' evolutions and global connectivity.
  • By investing wisely in Asian companies, such as TSMC, a global leader in semiconductors key to AI support, Taiwan's Sunonwealth, renowned for its innovative MagLev motor fans for data centers, essential for the growing complexity of AI technology, and Accton, a Taiwanese firm specializing in high-speed networking switches for U.S. tech giants, one can capitalize on the emergence of AI technology and its impact on multiple industries.

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