Asian chip boom reshapes global capital flows.

Asian chip boom reshapes global capital flows. South Korea and Taiwan are generating unprecedented windfalls from AI-driven semiconductor demand, creating a modern version of the Asian savings glut that influenced US borrowing costs in the late 1990s. Taiwan's current account surplus surged 111% year-over-year to $62.5 billion in the first quarter, while Samsung's semiconductor profits jumped 48-fold. This capital is now recycling back into US dollar assets, indirectly supporting tech hyperscalers like Alphabet, Meta, Microsoft, and Amazon. Oxford Economics notes this AI-linked surplus recycling is narrower and more concentrated than previous cycles, fundamentally reshaping how capital flows through the global economy and funding major technology infrastructure investments.