1. Semiconductor price hikes: The world’s leading semiconductor company hinted at a possible price hike. One of its biggest clients, a semiconductor chip design company at the forefront of the artificial intelligence boom, is supportive of the price increase. This could also benefit the bottom line of other semiconductor firms. While price-sensitive customers may seek alternative suppliers, the strong global demand for semiconductors might not necessarily have a negative impact on sales at leading companies.

2. South Korea’s ‘Value Up’ program: South Korean companies trade at valuations which are on average the lowest among emerging market (EM) peers. This is despite hosting some of the most globally dynamic and innovative companies in the semiconductor and materials industries. We believe Korea’s Value-Up program is a step in the right direction. However, results will take time to materialise due to its voluntary nature and political disagreements on tax reform.

3. Persistent geopolitical tensions: Canada may be joining the United States and European Union (EU) in the imposition of additional tariffs on electric vehicles (EVs) made in China. With the EV segment already seeing a material slowdown in growth expectations, this has negative implications on EV makers.

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