South Korea's semiconductor industry faces a delicate balancing act as it navigates between China's market demand and U.S. technology restrictions, according to the Asean+3 Macroeconomic Research Office. The sector depends on China as a major export market while relying on U.S.-allied countries for advanced chip-making equipment and design tools. Deeper engagement in supply-chain frameworks and export-control coordination could help Korean firms limit regulatory surprises and protect investment flows.

In Hong Kong, Karrie International is poised for strong growth with analysts projecting a 50.9% EPS CAGR through 2028. UOB Kay Hian initiated coverage with a buy rating and HK$3.12 target price, citing surging orders from a U.S. ASIC customer and Nvidia. The metal and plastics parts manufacturer began mass-producing server chassis in August and has received confirmed orders for Nvidia's compute tray and network switch tray.

Despite Middle East tensions, South Korea and Taiwan's earnings outlook remains robust due to global AI-related spending, Eastspring Investments analysts say. The U.S. and China are unlikely to slow AI-infrastructure investments despite higher energy prices, which could support Asia's electronics-oriented economies. Korea and Taiwan stand out for their positions in the technology value chain and have higher tech concentration in their equities compared with previous energy shocks.