AI chips could power Asia’s renaissance

INVESTORS are piling into South Korea and Taiwan for semiconductor stocks, but the artificial intelligence (AI) boom isn’t just fattening profits at North Asia’s chip champions. It is powering a broader economic resurgence, driven by stronger household consumption, rising investment and widening tax coffers.

Real gross domestic product growth for two of North Asia’s AI powerhouses – Taiwan and South Korea – has risen over the past 12 to 15 months, FactSet data shows, with Taiwan’s now running at 11.8% in the first quarter.