- Japan's restrictions on exports of key tech components to Korea could meaningfully
impact the tech supply chain in Asia.
- China's tech supply chain may be under further pressure when US supply is already
tightened. Taiwanese suppliers may be a net beneficiary.
- This adds to the list of pending negotiations for global trade. We suspect that
we may have to wait until after the July 21 Upper House elections in Japan for negotiations
to begin, coinciding with the US-Japan and US-China talks.
- Investors should remain cautious near term on Korean tech names since they have
not yet reflected potential escalations. Taiwanese tech suppliers may benefit.
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