KraneShares highlights Asia's dominance in semiconductor production

China: China participates in the semiconductor and materials supply chain supporting AI infrastructure through domestic manufacturing and technology development. The nation is positioned as one of the four focal markets in discussions of Asian AI capacity concentration. KAIT incorporates Chinese holdings to provide broad regional exposure to AI-enabling technologies. Japan: Japan supplies advanced materials, equipment, and components vital to semiconductor fabrication and AI hardware assembly. It contributes specialized capabilities that complement production in other Asian markets. The KAIT ETF includes Japanese companies to capture this segment of the AI supply chain. Korea: South Korea is a key hub for high-bandwidth memory production and semiconductor equipment spending that underpins AI systems. The country contributes specialized memory technologies essential for AI data center infrastructure. KAIT seeks diversified exposure to Korean companies to address AI bottlenecks in memory and related components. Taiwan: Taiwan hosts critical advanced semiconductor manufacturing and packaging capabilities central to global AI hardware production. The country plays a leading role in foundry services and advanced packaging that support AI infrastructure scaling. KraneShares' KAIT ETF includes exposure to Taiwanese firms as part of its strategy to capture AI buildout across the region. KraneShares: KraneShares is a New York-based investment manager specializing in exchange-traded funds that provide access to thematic opportunities in emerging markets, technology, and alternatives. The firm recently launched the Asia AI Technology ETF (KAIT) to target companies involved in the Asian semiconductor and AI supply chain. Its research and product lineup directly address the concentration of semiconductor production capacity in Asia highlighted in the news. Product Launch: KraneShares launched the Asia AI Technology ETF (KAIT) in August 2026 to offer targeted exposure to Asian companies in the semiconductor and AI infrastructure ecosystem. Regional Roles: Recent analysis from KraneShares and industry sources emphasizes the distinct contributions of Taiwan in advanced logic and packaging, Korea in memory, Japan in equipment and materials, and China in broader electronics and domestic capacity.