Asia tech selloff is a buying opportunity, says Manishi Raychaudhuri; but India has a problem to fix first - The Economic Times

• South Korea has announced a massive investment plan for semiconductor and AI "megaprojects" totaling $1 trillion to bolster its technological infrastructure. • The initiative aims to keep the nation competitive as regional rivals, including Taiwan, China, and Japan, aggressively increase their own spending on chip manufacturing and AI data centers.

• South Korea has unveiled a national AI infrastructure strategy, citing China's recent DeepSeek breakthrough as a primary catalyst for accelerating its efforts. • The government will launch a flagship initiative provisionally titled the ‘World’s Best LLM’ project to advance domestic artificial intelligence development.

• South Korea has unveiled a massive $880 billion strategic plan to secure dominance in the AI chip market and compete with the US, China, and Taiwan. • The initiative leverages the nation's existing strength in advanced manufacturing and memory chip production for smartphones, computers, and AI servers.

• The Indian startup ecosystem ended June with significant activity, highlighted by Incuspaze raising Rs 150 crore and multiple AI startups securing fresh capital. • EBG Group signed a licensing deal with South Korea's POSCO International for the Daewoo brand, planning to invest Rs 100 crore over three years to open nearly 100 stores by 2027.

• South Korean President Lee Jae Myung has announced an $880 billion initiative to transform the nation's underdeveloped southwest region into a global semiconductor hub. • The plan leverages South Korea's existing position as a primary beneficiary of the global AI boom to further solidify its dominance in chip production.

• Uzbekistan is launching a $5 billion AI export plan to transition its economy from basic outsourcing to high-value digital services. • The strategy leverages the nation's young workforce, abundant energy resources, and expanding digital infrastructure to attract foreign investment.

• The Bank for International Settlements (BIS) warned in its annual report on Sunday that the current surge in AI investment spending could trigger a stock market crash and a broader recession. • The BIS drew parallels between the current AI trend and previous technology booms that collapsed, leading to severe global economic consequences.

• DBS Bank reports that the global AI "arms race" is triggering a multi-year capital expenditure supercycle estimated to reach $1 trillion. • While semiconductors were the initial focus, the investment surge is now expanding into energy, networking, data centers, and general infrastructure.

• The Bank for International Settlements (BIS) has warned that while AI supports global growth, the massive trillion-dollar spending on infrastructure and opaque financing could pose a systemic risk to financial stability. • Key concerns highlighted by the BIS include rising debt levels and the potential for financial instability stemming from the rapid, high-cost expansion of AI technologies.

• The Spanish government is investing over €240 million into AI and RISC-V chip development through the SETT initiative to enhance digital sovereignty and European competitiveness. • Key beneficiaries of this funding include specialized firms such as Multiverse Computing, Substrate AI, and Openchip.

• GitHub's Advisory Database is currently experiencing record-breaking volumes of vulnerability reports, causing a significant backlog in processing. • The surge in submissions has led to extended review times, which is delaying the timely disclosure of critical security flaws.

• The Europe Stoxx 600 index is positioned to achieve its most significant quarterly gain in more than five years, driven largely by a surge in artificial intelligence interest. • Technology stocks specifically rose 1.7 per cent, putting them on track for their strongest quarterly performance since October 2001.