Asia’s growing dominance in the AI hardware supply chain is emerging as a major investment opportunity. This is according to Lim Wen Loong, Fund Manager for Emerging Markets at WhiteOak Capital.

Lim said that while most of the global focus remains on US tech giants, Asia — particularly Taiwan and South Korea — plays a vital role in building the hardware that powers artificial intelligence. “There is no AI without companies in Taiwan and Korea,” he said. He calls them the “picks and shovels” of the global AI ecosystem.

Unlike past tech bubbles, Lim believes the current AI surge is supported by real earnings growth. Companies such as Nvidia are delivering strong results. However, he added that WhiteOak is looking beyond headline names. They aim to find value in niche areas like power supply systems and custom chip design.

He noted that large US firms like Google, Amazon, and Meta are funding AI expansion from their own reserves. However, he warned that risks rise when firms rely on debt to finance these projects.

In India, Lim said the country’s shift toward back-end semiconductor processes is a pragmatic move aligned with its labour strengths. “It’s a more realistic approach that can build long-term capability,” he said.

While Lim sees Asia as central to the future of AI, he cautioned that the sector’s rapid growth also brings volatility. Investors should assess how dependent companies are on AI-driven revenues before jumping in.

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