Singapore state-owned firm Temasek Holding Pte. Ltd. is planning to invest $30 billion in the United States of America over the next five years. This decision comes as the firm is very cautious about putting money in China. The Head of Temasek North America, Jane Atherton, said in an interview on Monday, “The Americas is going to be and continue to be the largest recipient of capital.”
With this investment, Temasek’s investment in the Americas has surpassed its investment in China. Investments in the USA now account for 22%, or $63 billion, of Temasek’s portfolio, while China stands at 19% of the total portfolio and Singapore at 27%. As of March, the company holds $389 billion in assets, more than the previous year’s $382 billion.
China and the USA are doing everything possible to win the semiconductor chip race because semiconductor chips are linked to and used in making AI and other digital equipment. The USA is also decreasing the rise of the Asian semiconductor industry and putting tariffs on exports. The Biden administration also introduced a chips act promoting chip manufacturing in the USA.
The rivalry between China and the USA has left investors looking for an opportunity to invest in the hottest sector in the market today. Atherton stressed the importance of companies like Temasek not investing in geopolitically sensitive companies and areas. According to him, the best way to invest and avoid some constraints is by taking passive public equity stakes in listed and public Semiconductor companies. He said, “We ensure we are not investing in businesses in the crosshairs of geopolitical tensions.”
This might be the next big thing in the semiconductor industry, and America has been waiting for it all this time. If everything goes as planned, the USA can significantly increase its ability to manufacture semiconductor chips and run the ATP(Assembly, Testing, and Packaging) process on them.
