Source: The Next Web
Manufacturing activity in Asia expanded in June as AI infrastructure buildout overrode other economic headwinds, including regional geopolitical tensions. Semiconductor and server production now operates under different rules than traditional manufacturing, with enterprise cloud and AI capex flowing through Asia's supply chain regardless of broader macroeconomic conditions. The dependency is asymmetrical: Asia's factories need sustained AI demand to maintain growth momentum, while Western tech companies need uninterrupted access to Asia's production to meet their own AI infrastructure targets. Either side experiencing disruption poses structural risk.