From memory shortages to computing power crunch: How far can Asia's semiconductor industry go?

From Storage Shortages to Compute Capacity Crunch: How Far Can Asia's Semiconductor Industry Go?

SK Hynix’s quarterly operating profit margin has surged past 72%, while Taiwan Semiconductor’s 2026 capital expenditure is set to hit a record high of USD 52 billion—behind these booming figures lies an AI supply chain that is rapidly closing its loop.

On the surface, this rally is supported by the surging demand for computing power driving a chip price upcycle, supply shortages in HBM memory creating storage-related gains, and Taiwan Semiconductor's global monopoly on advanced process nodes—but beneath this lies an underappreciated structural logic.

The four major production hubs—China, Japan, South Korea, and Taiwan—are now achieving unprecedented synergy: domestic substitution in China, HBM dominance in Korea, Japan’s equipment moat, and Taiwan Semiconductor’s exclusive hold on advanced nodes. What does it mean when all four dynamics align simultaneously?

In this Alpha Call, Futu’s Private Wealth team partners with E Fund Management to deliver a systematic breakdown of Asia’s semiconductor investment thesis:

📌 Core Topics

• Why does Asia produce over 75% of the world’s chips? Where does the competitive moat of this ‘golden quartet’ of production hubs originate?

• Among China’s domestic substitution, Korea’s HBM leadership, Japan’s semiconductor equipment strength, and Taiwan Semiconductor’s advanced-node dominance—which segment offers the highest certainty for investors?

• Once the AI commercial flywheel takes hold, what are the optimal timing and risk boundaries for positioning in the Asia Semiconductor Index by 2026?

🎙️ Guests in this episode

Feng Di, Research Analyst, International Index Department, E Fund Management

Yang Yi, Senior Industry Analyst, Institutional and Private Wealth Division, Futu Securities

400K Views