Boom

• South Korea's artificial intelligence boom is transitioning from a primary export driver into a comprehensive investment cycle. • The shift focuses on whether corporate profits from AI are translating into increased wages, household income, and broader domestic investment. • This evolution is critical as it supports long-term productive capacity and fosters a more confident economic policy outlook for the region.

• Chinese AI startup DeepSeek is in talks to raise $1.5 billion at a valuation of $71 billion, following a previous $7 billion funding round. • The deal is backed by major investors, including Tencent and a state-led AI fund from Beijing, signaling strong domestic support. • This rapid growth demonstrates China's ability to advance its AI capabilities despite ongoing U.S. restrictions on high-end technology.

• ASML, Europe's largest company by market capitalization, has raised its 2026 total net sales forecast to between €43 billion and €45 billion. • The Veldhoven-based firm also increased its projected gross margin to between 54% and 56%, up from the previous estimate of 51% to 53%. • This upgrade reflects the company's continued growth driven by the global AI boom, causing its share price to rise by more than 5%.

• IBM warned that massive investments in AI infrastructure are squeezing corporate software budgets, leading to forecasts of weaker revenue growth. • The company reported specific weakness in its mainframe business, which provides critical transaction processing for the banking and airline industries. • Businesses are shifting financial priorities toward cybersecurity to counter the rise of AI-driven hacking capabilities.

• ASML has increased its financial guidance due to surging global demand for AI chips, signaling continued growth in semiconductor investments. • OpenAI is reportedly exploring the launch of a screen-free AI speaker, potentially expanding the company's reach into consumer hardware. • New reports have highlighted the highest-paying degrees and the rise of "founder factories" in Europe designed to accelerate startup growth.

• IBM warned that the rapid AI boom is squeezing corporate software budgets as companies reallocate funds toward data-center infrastructure. • This shift in spending has pressured software demand and negatively impacted IBM's near-term financial outlook, causing its shares to plunge. • The trend highlights a critical transition in the tech industry where infrastructure investment is currently being prioritized over software implementation.

• South Korea's KOSPI index has entered a bear market after plunging approximately 25% from its record high reached in late June. • The decline was accelerated by an 8% single-session drop and a 30% crash in a twice-leveraged ETF tracking the stock in Hong Kong. • This volatility underscores a dangerous over-reliance on the semiconductor sector, as Samsung Electronics and SK Hynix now comprise over 50% of the KOSPI's weighting.

• The Bank for International Settlements (BIS) warns that the current global race to build AI infrastructure could trigger a severe market disruption. • The BIS suggests that the AI investment surge is mirroring previous technological booms that were fueled by excessive debt and eventually ended in financial busts. • This warning highlights the risk of a "boom-to-bust" cycle if the massive capital expenditures on AI hardware and data centers fail to generate expected economic returns.

• South Korea's theater market ticket sales have surged by 105%, reaching a record $50 million according to the latest KOPIS data. • The boom was primarily driven by high-demand global productions, specifically the Japanese touring production of Spirited Away and the British stage adaptation of Life of Pi. • This growth signifies a shift in the live entertainment ecosystem, proving that audiences are willing to pay premium prices for well-known international brands.

BBPA wants content definition for beer to be considered alcohol free to be changed from 0.05% to 0.5%Pubs and brewers are being prevented from capitalising on Britons’ record-breaking thirst for alcohol-free beer because of over-strict regulation, a trade body has warned.More than 64m pints of low- and no-alcohol beer is forecast to be sold over the summer, an increase of 8m compared with 2025, the British Beer and Pub Association (BBPA) said, citing the figures as proof that the category is “not just a fad”. Continue reading...

• AI leaders from Anthropic and OpenAI are calling for the creation of a global oversight committee to monitor advanced AI systems and forcibly slow development if recursive self-improvement poses a risk. • Recent algorithmic breakthroughs in detecting vulnerabilities in high-security cybersecurity software have triggered widespread anxiety across both public and private sectors. • In a shift from its historically hands-off approach, the Trump administration has reportedly begun implementing checks and balances regarding the deployment of powerful AI models.

• Water-related spending for European data centers is projected to reach €6.8 billion by 2036, driven primarily by the rapid expansion of AI technologies. • Growth is shifting toward new markets, including Spain, Italy, Poland, and the Nordic countries, each presenting unique regional constraints and opportunities. • This surge in investment is critical as operators must balance the high cooling demands of AI infrastructure with environmental sustainability and water scarcity.

• Big Tech companies are investing heavily in artificial intelligence infrastructure, leading to significant revenue growth for semiconductor chipmakers. • Apollo chief economist Torsten Sløk has raised concerns regarding the timeline for these massive investments to translate into actual cash returns. • The situation highlights a growing tension on Wall Street between the current spending boom and the uncertainty of the long-term financial payoff.

SK hynix, a supplier of advanced memory chips, has seen profits skyrocket thanks to the global race to build AI datacentresSouth Korean chip maker SK hynix set pricing for its mega US listing on Friday, aiming to raise $26.5bn as it takes advantage of the AI boom in what will be one of the world’s biggest ever stock sales.The Asian semiconductor giant plans to issue the equivalent of about 18m shares on Wall Street’s tech-heavy Nasdaq index later in the day. Continue reading...

• European startups raised $24 billion in the second quarter of 2026, marking the strongest quarterly performance in four years. • This funding surge represents an approximate 33% increase compared to the previous quarter. • The growth is primarily driven by the United Kingdom and the expansion of artificial intelligence giants.

• The International Monetary Fund (IMF) has given South Korea the largest growth outlook upgrade among the world's 30 major economies. • This upward revision is primarily driven by a massive boom in semiconductors fueled by the global surge in artificial intelligence (AI) technology. • The growth in the tech sector is significant enough to offset economic headwinds caused by ongoing conflicts in the Middle East.

• The IMF reports that top AI hardware exporters, including South Korea, Taiwan, Malaysia, and Thailand, outperformed growth forecasts by an average of 4.4 percentage points in Q1. • South Korea saw significant success, with an annualized growth rate of 7.5%—over four times the 1.8% projection—as semiconductor exports offset high energy costs. • Vietnam's 2026 growth forecast was raised by 0.4 percentage point to 7.5% due to the surge in technology exports.

• South Korea's digital industry revenue grew 9.3% year-on-year to reach 1,378 trillion won in 2024, fueled largely by the rapid adoption of artificial intelligence. • A government survey revealed that national digital maturity has increased to 75.4%, reflecting a broader systemic shift toward digitalization. • Cloud computing (52.0%), AI (43.5%), and big data (29.1%) emerged as the top three technologies developed or adopted by companies over the last three years.

Report finds widespread overbidding as rapid AI growth generates increased wealth in city where housing is scarceSan Francisco’s AI boom has buyers spending unprecedented amounts of money on homes – much more than sellers are asking for.A new analysis from real-estate brokerage Compass, found that in the first half of 2026, more than 140 homes in the city sold for at least $1m above their asking price, 44 of them in June alone. Continue reading...

• Samsung Electronics expects a massive 19-fold (1,800%) increase in profits, fueled by the global surge in demand for artificial intelligence (AI) memory chips. • The profit spike is driven by a market imbalance where the demand for semiconductors continues to outstrip available supplies, leading to higher prices. • This trend highlights the critical role of high-performance memory in powering AI infrastructure and the immense financial potential for chip manufacturers.

• Samsung is projected to achieve a record-high operating profit in the second quarter, fueled by surging demand for AI infrastructure and memory chips. • To sustain this growth, Samsung and SK Hynix have pledged a combined investment of 3,200 trillion won ($2.07 trillion) to expand chip production capacity in South Korea. • Samsung plans to execute its portion of this investment between 2026 and 2040, though SK Hynix has not yet provided a specific timeframe.

• Samsung Electronics reported a significant surge in operating profit for the second quarter, driven by a global boom in artificial intelligence infrastructure. • The growth is primarily attributed to increased demand and rising prices for DRAM and NAND memory chips. • This financial jump is critical as it reflects broader trends in data-center spending and the overall pace of the worldwide AI buildout.

• NBC and Fox News reported a significant surge in viewership for their Fourth of July specials during the U.S. 250th anniversary celebrations. • NBC's fireworks broadcast achieved its highest ratings in eight years, while Fox News recorded its most successful July 4 performance to date. • The ratings boom highlights a strong public interest in national holiday programming and patriotic events.

• Europe's defense industry is facing a critical structural bottleneck due to its inability to produce the semiconductors required for modern weaponry at scale. • The shortage impacts the production of essential military technology, including drones, missiles, radar systems, communications, and electronic warfare tools. • Despite rising defense budgets across the EU, the region remains heavily dependent on foreign microelectronics, limiting its ability to convert spending into actual military capability.

• Chinese semiconductor equipment manufacturers are accelerating expansion via fundraising and acquisitions to capitalize on a major growth cycle. • This surge is driven by increased domestic demand for AI investment, memory chip capacity growth, and a strategic shift toward import substitution. • Parallel developments include Zhonghao Xinying launching the Xuyu AI processor to challenge GPU-based computing and India accelerating its own semiconductor ambitions.

• Major Japanese companies are projected to achieve record net profits for the sixth consecutive year in the current fiscal year. • This growth is primarily driven by a robust technology sector fueled by the global boom in artificial intelligence demand. • The AI-led surge is expected to outweigh the negative impact of rising input costs resulting from conflicts in the Middle East.

• HTF Market Intelligence has released a comprehensive study on the Asia-Pacific Location Based Entertainment (LBE) hardware market, projecting growth trends from 2025 to 2032. • The report highlights the rapid evolution of the sector, driven by AI integration and the influence of major industry giants including SEGA Corporation, Pico Interactive, and Zero Latency VR. • This growth signifies a booming demand for immersive physical entertainment experiences across the Asia-Pacific region, reflecting a shift toward high-tech interactive leisure.

• A new national poll conducted by Elon University and YouGov reveals that Gen Z Americans are more optimistic about the future than Baby Boomers. • While pride in being American remains strong across all generations, respondents generally believe the nation's founders would be disappointed in the current state of the country. • The survey provides a snapshot of national sentiment as the United States approaches its 250th birthday.