The global AI infrastructure buildout is accelerating, with hyperscalers collectively committing over $200bn in capex for 2025. While much of this spend flows to US-based suppliers, the Asian supply chain — spanning Taiwan, South Korea, Japan, and increasingly Southeast Asia — is capturing a growing share.
We identify three layers of opportunity: (1) the semiconductor and packaging tier, where TSMC, SK Hynix, and Micron dominate but mid-cap names in advanced packaging are underappreciated; (2) the power and cooling infrastructure tier, where Asian manufacturers of transformers, UPS systems, and liquid cooling components face a step-change in demand; and (3) the connectivity tier, where optical transceivers and high-speed networking equipment suppliers are structurally re-rated.
Our framework focuses on identifying companies with (a) defensible technology moats, (b) customer concentration below 40%, and (c) balance sheets capable of funding capacity expansion without equity dilution.