Asia drives trade realignment toward future-shaping industries and FDI-driven corridors
McKinsey (authored by Gautam Kumra) outlines a strategic analysis of a major global trade realignment driven by FDI into future-shaping industries such as data centers, semiconductors, AI, and EV battery manufacturing.
Main announcement/action: McKinsey presents evidence that FDI is concentrating in future-shaping industries and shifting trade corridors toward Asia; key quantified items include Asia’s share of global exports rising to 55% in 2023, AI investments in Asia projected at $110 billion by 2028, and national packages such as South Korea’s 9.7 trillion won (~$7.1 billion) aid for EV battery manufacturers and a $9 billion incentive for India’s semiconductor industry. Timelines and projections cited include semiconductor sector growth to $100–$120 billion by 2030 and global trade projected to $42–45 trillion by 2035.
Background and details: The report documents FDI pattern changes (e.g., flows to China falling by nearly 70% for some sectors), notes data center capacity growth in India (97.9 MW net take-up H1 2025), and highlights country-level policy actions (e.g., IndiaAI Mission launched March 2024, Japan’s AI legislation, and TSMC’s >$20 billion investment in Japan). It situates these within regional dynamics (ASEAN–China trade links; India, Malaysia, Indonesia, Vietnam as major inflow recipients).