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Investing.com -- The booming artificial intelligence sector is creating major opportunities for Asian semiconductor companies, which are a key part of the supply chain, recent analysis from UBS showed.
The investment bank identified four key players in the region’s chip industry that stand to benefit further from increased demand for advanced processing and specialized chip packaging technologies.
UBS highlights these Buy-rated top performers in the Asian chip sector:
UBS reiterated its Buy rating on Taiwan Semiconductor Manufacturing Company as the leading Cloud/Edge AI foundry. The bank expects TSMC to ramp up capital spending as it increases capacity to meet outsized chip demand, especially for the advanced 3 nanometer platform. The brokerage flagged strong demand from TSMC from U.S. hyperscalers, as they build out their AI infrastructure.
Taiwan Semiconductor Manufacturing Co. reported its October 2025 revenue grew 11.0% from the prior month and 16.9% year-over-year.
Designated as a UBS Key Call Buy, ASE Technology is positioned as a key beneficiary of advanced packaging and testing services. Similar to TSMC, UBS anticipates ASE will increase its production capacity in 2026, strengthening its market position in the semiconductor assembly and testing space.
In recent news, ASE Technology Holding Co. announced third-quarter 2025 earnings that significantly surpassed expectations, reporting consolidated net revenues of NT$168.6 billion and an EPS of NT$2.50.
Grand Process Technology Corporation (GPTC)
UBS upgraded GPTC to Buy from Neutral with a revised price target of NT$1,800, substantially higher than the previous target of NT$750. The bank expects overall equipment demand for advanced packaging to grow significantly in 2026-27, potentially accompanied by average selling price increases. UBS also notes that faster technology migration presents an opportunity for GPTC to gain market share as a technology leader in wet process solutions, a key part of chip manufacturing.
King Yuan
UBS expressed a positive outlook on King Yuan based on growing testing value from major clients including server makers Nvidia and Broadcom. The bank believes that sustained Cloud AI demand growth will create opportunities for companies in the advanced packaging and Chip-on-Wafer-on-Substrate (CoWoS) equipment supply chain.
These companies represent the strongest investment opportunities in the Asian semiconductor sector according to UBS analysis, particularly as artificial intelligence applications continue to drive demand for advanced chip technologies and specialized manufacturing processes.
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