When investors think of AI, they usually think of foundation models (e.g. GPT, Claude etc), computing chips (e.g. NVIDIA, AMD etc) and applications (e.g. Autonomous driving, Enterprise analytics etc). However, all of these are unable to function without a physical layer of high-speed interconnects, powertrains and precision mechanical components. This hardware layer is where Asia dominates and its edge is rooted in the region’s long history of manufacturing the world’s consumer electronics. Asia’s scale and experience in precision manufacturing, as well as its innovation help to underpin its role in today’s global tech and AI supply chains – a position that is difficult to displace or replicate. My tour of 6 cities in China over 4 days reinforces my view of Asia’s edge in the AI hardware ecosystem and the structural opportunities that are under appreciated by many investors today.
