Bloomberg said shares of South Korea’s LG Electronics, Taiwan’s Nanya Technology, and China’s Huizhou Desay SV Automotive and Pateo Connect Technology rose on expectations of broader cooperation with Nvidia. LG Electronics closed at 140,900 won as of April 30, up 33% over the past month. On April 28, the stock jumped as much as 15% intraday after reports it was discussing linking its home robot to Nvidia’s platform.
Nanya rose 10% on news of cooperation with Nvidia, Bloomberg said. Desay’s shares also advanced after it unveiled an intelligent driving solution with Nvidia, while Pateo gained on expectations of expanded collaboration.
Bloomberg reported that about 90% of Nvidia’s production costs now go to Asian suppliers, up sharply from about 65% last year, as surging demand for AI chips increases reliance on Asian firms strong in manufacturing, assembly and key components.
“Global tech companies like Nvidia inevitably will keep increasing their dependence on Asian supply chains,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “Physical AI will be an additional growth driver on top of the already rapidly rising AI chip demand in Asia’s supply chain.”
Cooperation expands into physical AI
The recent cooperation trend is widening beyond semiconductors into physical AI. Nvidia has worked with SK hynix and Samsung Electronics to boost AI computing capacity, but it has recently broadened cooperation into robotics and autonomous driving.
Madison Huang, a senior director and the eldest daughter of CEO Jensen Huang, visited LG Electronics’ headquarters in Seoul on April 28 and discussed cooperation in robotics, AI data centers and mobility with LG Electronics President Ryu Jae-cheol, according to the report.
Bloomberg said Nvidia’s physical AI strategy is expanding applications across real-world industries, including robotics, autonomous systems and AI-driven manufacturing, while highlighting Asia as a core partner. Huang has previously described physical AI as the next growth phase after generative AI.
Some analysts said the shift could support broader gains in Asian tech shares. “As AI demand expands and its applications broaden at the same time, more companies are getting opportunities to participate in the supply chain,” said Marvin Chen, a strategist at Bloomberg Intelligence. He said North Asian markets with a high weighting in technology could show relative strength.
Large capital spending plans by U.S. big tech companies are also supporting the trend. Amazon, Microsoft and Alphabet each plan about $190 billion to $200 billion in capital expenditures this year, while Meta has raised investment to as much as $145 billion, Bloomberg said.
Nvidia has become a key supplier, accounting for about half of Microsoft’s investment and about a quarter of Amazon’s, the report said. As a result, Asian companies including Foxconn and SK hynix have continued to benefit indirectly.
“AI is creating new demand across semiconductors, components, servers and hardware infrastructure, bringing Asia’s structural strengths into sharper focus,” said Rajiv De Mello, a global macro portfolio manager at Gama Asset Management. “Asia already has the experience and supply chains to build advanced semiconductors and robots, giving it a favorable foundation for implementing physical AI.”
* This article has been translated by AI.
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