Temasek Commits $30 Billion to U.S. AI, Semiconductor, and Data Center Ventures
The state-owned Temasek Holdings Pte Ltd. of Singapore is being careful about investing in China. Over the next five years, the company intends to spend $30 billion in the US market.
In an interview on Monday, Jane Atherton, the head of Temasek’s North American operations, stated, “The Americas is going to be and will continue to be the largest recipient of capital.”
This year, Temasek invested more in North and South America than in China for the first time in at least ten years. Currently, 22% of America’s portfolio, or $63 billion, consists of investments. 19% of the portfolio is comprised of Chinese investments, while 27% is made up of Singaporean equities.
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As of March, the company was managing $389 billion ($289 billion) in assets, up from S$382 billion the previous year. As semiconductor creation shares affinities with Artificial Intelligence as well as other attributes rooted in digital economy. China and United States have turned into rivals for the control of such businesses. As a way of hindering the advancement of its rival nation in Asia, America has implemented export restrictions, slapped tariffs on imports and even suggested laws aimed at blocking Beijing from getting advanced semiconductor technology.
When it comes to the heated rivalry between these two countries, investors are caught up in a geopolitical maze. They are scrambling for part of one of the most sizzling markets going around today. Taking passive public ownership shares in listed semiconductor businesses is one method to organize investments around some restrictions, according to Atherton of Temasek.
Temasek has stayed away from investing in politically delicate sectors in China in favor of major domestic corporations. It is seeking to increase its holdings in biotech companies and manufacturers of electric vehicles. We ensure that we are not funding companies that are at risk from geopolitical unrest,” Atherton stated.
She said Temasek is aiming to invest in semiconductor and infrastructure investments, like data centers. The companies that power them, as well as AI-related businesses in the US. According to Atherton, it can invest alongside private equity companies or through its own real estate subsidiaries. Companies like Mapletree Investments Pte Ltd. and CapitaLand Group Pte. Ltd., to obtain exposure to data centers.
