BGzBVJiAsYdVaY7NbP6MoMmMtRsMeRpPrPfQmOrMaQqRtOvPnOnPxNmQrQHSBC Global Investment ResearchTrade & Capital Flows25June2026Shared circuitsEconomicsAsiaHow Al is redrawing Asia's trade mapAltradeisreshapingAsia'strademap,creatingnewcorridors and deeper intra-Asian supply-chain integrationAsia is becoming an Aldemand centre.Global Al computeanddata centre investment is expanding beyond the US and ChinaNear-termrisks:front-loading payback as inventoriesnormalise, and chip price spikes adding to inflation pressuresInes LamAl trade shifts into high gearEconomist,AsiaAl is delivering what trade deals long promised:deeper regional trade and supplyThe Hongkong and Shnghai Banking Corporation Limitedines.y.k.lam@hsbc.com.hkchain integration. Intra-Asian Al trade has doubled to nearly USD2trn in 2025 versus+85222887131pre-pandemic levels, with intermediate inputs accounting for 83% (Chart 1).FredericNeumannChief Asia Economist, Co-head Global Research AsiaThis isn't just about higher volumes, but new routes and structures. Al is rewiringThe Hongkong and Shanghai Banking Corporation Limitedregional production networks into multi-directional corridors linking layers of the valuefredericneumann@hsbc.com.hk+852 2822 4556chain. The growing Korea-Taiwan corridor is a notable shift, emerging ahead ofAbanti BhaumikKorea's broadertrade surge in 2026.North Asia-ASEANflows have also acceleratedAssociateas Korea and Taiwan sourcemore inputs fromASEAN.Korea's exports to mainlandBangaloreChina have rebounded, flipping the balance from deficit to surplus, reflectingmainland China's demand for high-performance memory for advanced Al training.Demand remains concentrated in the US and China, but Asia is increasinglybecominganAl demand centreasdata-centre investment andenterpriseadoptionscale,supporting a region-wide capex upswing.Near-termrisks include afront-loading payback and inflation spillovers from higher chip and electronics prices.Chart 1: Asia's exports of Al-enabling goods, quarterly to 1Q26USDbnA-0-^ %800USD mn60quarterly, % y-0-y (RHS)700506004050030400 20 30010200100-10-20Mar-16Mar-17Mar-18Mar-19Mar-20Mar-21Mar-22Mar-23Mar-24Mar-25Mar-26Source: Intemational Trade Centre (ITC) Trade Map, HSBCNocountryforbearsThe 24th edition of the EM Sentiment SurveyThis is ourlatest report on theTrade&Capital Flows theme.If you wanttoClick to viewsubscribetoany of our ninebigthemes,click hereDisclosures&DisclaimerIssuer of report: The Hongkong and ShanghaiThis report must be read with the disclosures and the analyst certifications inBankingCorporationLimitedthe Disclosure appendix, and with the Disclaimer, which forms part of it.ViewHSBCGlobal InvestmentResearchat:https://www.research.hsbc.com
HSBC25 June 2026Asia's dominance in Al-enabling goodsTo analyse the Al trade value chain in more detail, we used the World Trade Organization'sdefinition of"Al-enabling goods1", which encompasses a basket of 105 goods at the HS 6-digitlevel,groupedintothreeindicativecategories:rawmaterialsandprocessedchem...
