Core thesis
Asia's opportunity is best understood as an integrated production system spanning foundries, memory, automation, power equipment and regional finance.
What the evidence says
TSMC's Q2 2026 gross margin reached 67.7%, showing the economics of scarce leading-edge capacity.
The IMF noted that AI-driven demand benefits economies integrated into the global technology value chain.
Power availability and equipment lead times increasingly determine where new manufacturing capacity can be built.
Portfolio implication
Combine technology leaders with automation and power enablers, then offset the concentration with regional banks and explicit geopolitical limits.
What would change our view
Export controls fragment supply chains
Inventory corrections amplify cyclicality
Currency volatility erodes local returns
Primary sources
Public facts are linked to primary sources. Portfolio weights and return assumptions are illustrative.