India losing AI chip investment to Taiwan and South Korea
India isn't grabbing as much global investment in AI and semiconductors these days, and UBS's Arend Kapteyn says it's because Taiwan and South Korea are leading the pack.
Investors are flocking to places that are already big players in the AI supply chain, where booming chip exports are fueling both economic growth and stock market highs.
Taiwan now 5th-biggest equity market
Taiwan just passed India as the world's fifth-biggest equity market, mostly thanks to tech giants like TSMC. Over there, AI chip exports now make up a big chunk of GDP growth.
South Korea is also cashing in with companies like Samsung and SK Hynix driving strong trade surpluses.
Meanwhile, investors worry about India's dependence on imported energy and how oil prices can rattle its currency, but Kapteyn thinks if global tensions cool off and oil gets cheaper, India could bounce back as an investment hotspot.