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Economy

Apple to AI: Inside Foxconn’s Dominance in Tech Manufacturing

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Foxconn’s AI Revolution: From iPhones to Servers, a Tech Titan Pivots for the Future

Table of Contents

Tokyo, November 30, 2025 – The tech landscape is undergoing a seismic shift, and at the forefront of this change is Foxconn, the world’s largest electronics contract manufacturer. Once synonymous with iPhone assembly,the company,under the leadership of Chairman and CEO Young Liu,is executing a remarkable and “systematic” pivot towards AI server manufacturing,riding the crest of the burgeoning artificial intelligence revolution.

Six years ago, Liu succeeded the legendary Terry Gou, and the results have been nothing short of notable. foxconn’s stock price has tripled, a testament to Liu’s strategic vision and successful execution. This transition wasn’t accidental. It was a calculated response to a changing market, recognizing the limitations of relying solely on a single product – even one as impactful as the iPhone.

The story of Foxconn’s rise is inextricably linked to Apple. Eighteen years ago,steve Jobs tasked Gou with assembling the revolutionary iPhone,a challenge Gou met by establishing massive factory complexes in China. This partnership propelled both companies to global dominance. However, the dynamic has shifted. While Apple, under Tim Cook, has struggled to replicate the iPhone’s success and lags behind competitors in generative AI, Foxconn is seizing the opportunity to define the next era of tech.

This isn’t an isolated case.Taiwan Semiconductor Manufacturing co. (TSMC), another Taiwanese tech giant that benefited immensely from the iPhone boom, is also dramatically increasing its production of AI chips, solidifying its position as a critical player in the AI hardware ecosystem. Both companies are demonstrating a prescient ability to anticipate and adapt to evolving technological demands.

Beyond Foxconn: Key Developments in Tech & Finance

* US IPO Market: The Nasdaq anticipates a surge in IPOs from Japanese and South Korean startups in the coming year, driven by stricter listing rules in Asian markets and a focus on listing quality.
* Luxury & Lifestyle: A surprising trend is emerging in the luxury sector: brands like Prada, Ralph Lauren, and audemars Piguet are opening cafes in Singapore, integrating dining experiences to boost foot traffic and brand engagement.
* EV Battery Supply Chain: American companies like Novonix are investing heavily in securing the supply chain for electric vehicle batteries, converting industrial byproducts into essential materials like graphite.

This shift underscores a crucial point: the future of tech isn’t about clinging to past successes, but about proactively embracing innovation and anticipating the next wave of disruption. Nikkei asia will continue to provide in-depth coverage of these pivotal developments as they unfold.

How is Foxconn’s diversification strategy,particularly its investment in AI hardware and infrastructure,impacting its relationship wiht Apple?

Apple to AI: Inside Foxconn’s Dominance in Tech Manufacturing

The Foundation of Apple’s Supply Chain: A Foxconn Deep dive

For decades,Hon Hai Precision Industry Co., Ltd. – better known as Foxconn – has been the silent engine powering Apple’s product empire. But the relationship is evolving. It’s no longer just about assembling iPhones; it’s about navigating the complexities of artificial intelligence (AI) hardware and manufacturing, and maintaining dominance in a rapidly shifting technological landscape. this article explores Foxconn’s pivotal role, its strategic adaptations, and the challenges it faces in the age of AI. We’ll cover key areas like electronics manufacturing services (EMS), supply chain management, and the burgeoning field of AI infrastructure.

From iPhones to AI Servers: Foxconn’s Diversification Strategy

Foxconn’s initial success stemmed from its ability to provide high-volume, low-cost manufacturing for Apple’s consumer electronics. Though, relying solely on iPhone assembly presented inherent risks.Recognizing this,Foxconn has aggressively diversified its portfolio,focusing on several key areas:

* Semiconductor Manufacturing: Investing heavily in companies like JSMC and exploring partnerships to bolster its chip production capabilities. this is crucial as AI demands increasingly sophisticated and specialized semiconductors.

* Electric Vehicles (EVs): Entering the EV market, aiming to become a major supplier of components and potentially a full-fledged EV manufacturer.This leverages existing manufacturing expertise and taps into a growing market.

* AI Hardware & Infrastructure: This is arguably the most significant shift.Foxconn is now building servers and other hardware specifically designed for AI workloads, positioning itself as a key player in the AI supply chain.

* Cloud Computing: Expanding its cloud services offerings, providing infrastructure and solutions for businesses adopting AI technologies.

This diversification isn’t just about spreading risk; it’s about controlling more of the value chain and becoming an indispensable partner in the future of technology. The move towards advanced manufacturing is central to this strategy.

The AI Infrastructure Build-Out: Foxconn’s Role

The demand for AI is driving an unprecedented need for specialized hardware. AI models require massive computational power, necessitating powerful servers equipped with advanced GPUs and other specialized processors. Foxconn is capitalizing on this demand by:

  1. Server Manufacturing: Producing servers for companies like NVIDIA and other AI chip designers. This includes both standard server configurations and custom-built solutions tailored to specific AI applications.
  2. Data Center Solutions: Offering complete data center solutions, including server assembly, installation, and maintenance.
  3. Thermal management: Developing advanced cooling solutions to handle the heat generated by high-performance AI processors. Effective thermal solutions are critical for maintaining server reliability and performance.
  4. Supply Chain Optimization for AI Components: Sourcing and managing the supply of critical components like GPUs, CPUs, and memory, ensuring a stable and reliable supply for AI hardware manufacturers.

this expansion into AI infrastructure is a direct response to the growing demand from companies like Apple, Microsoft, and Amazon, all of whom are heavily investing in AI.

Challenges to Foxconn’s Continued Dominance

Despite its strategic moves, Foxconn faces significant challenges:

* Geopolitical Risks: The ongoing tensions between the US and China create uncertainty in the global supply chain. Foxconn’s reliance on manufacturing in China exposes it to potential disruptions. Supply chain resilience is a major concern.

* Rising Labor Costs: While automation is increasing,labor costs in China are still rising,eroding Foxconn’s cost advantage.

* Competition: Other EMS providers,such as Pegatron and Wistron,are vying for market share.Furthermore, companies are increasingly looking to “nearshore” or “reshore” manufacturing to reduce reliance on Asia.

* Technological Complexity: Manufacturing AI hardware requires a higher level of technical expertise than assembling iPhones. Foxconn needs to continue investing in R&D and training to stay ahead of the curve.

* Intellectual Property Protection: Working with cutting-edge AI technologies requires robust intellectual property protection measures to safeguard sensitive information.

Case Study: Foxconn and NVIDIA Partnership

The partnership between Foxconn and NVIDIA exemplifies the shift towards AI. Foxconn manufactures NVIDIA’s DGX AI systems, which are used by researchers and businesses to develop and deploy AI applications. This collaboration allows NVIDIA to focus on chip design and software development, while Foxconn leverages its manufacturing expertise to scale production. This is a prime example of co-manufacturing in the AI space. The success of this partnership highlights the importance of collaboration in the rapidly evolving AI landscape.

Benefits of Foxconn’s AI Focus

Foxconn’s strategic pivot towards AI offers several benefits:

* Increased Revenue streams: Diversification into higher-margin AI hardware and infrastructure provides new revenue opportunities.

* Enhanced technological Capabilities: Investing in AI-related technologies strengthens Foxconn’s overall technological expertise.

* Stronger Relationship with Key Customers: Becoming a critical supplier of AI infrastructure deepens Foxconn’s relationship with

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Economy

Advanced AI: The US’s Joint Training of Humans and Robots in Artificial Intelligence Development

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy




US <a href="https://visitmexico.com/es/estado/23/quintana-roo" title="Quintana Roo - Visit Mexico">Manufacturing</a> Boom Faces workforce Crisis amidst AI Advances

Silicon Valley – A critically important effort to revitalize American manufacturing is underway, but a looming workforce shortage threatens to derail enterprising plans to bring production back to U.S. shores. Despite considerable investment and policy shifts aimed at bolstering domestic industries, the availability of skilled labor remains a critical obstacle.

the Reshoring Push and the Looming Skills Gap

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Initiatives to “reshore” manufacturing-bringing production back to the United States-gained momentum following pandemic-era supply chain disruptions and further support from recent governmental policies. However, a core challenge has emerged: securing a qualified workforce capable of staffing these expanding facilities. Apple’s commitment of $600 billion towards domestic manufacturing exemplifies the scale of this undertaking, yet projections indicate a shortfall of approximately 67,000 technicians, computer scientists, and engineers specifically within the chip industry by 2030.the broader economy could face a deficit of 1.4 million workers.

Competition for Talent and the AI Disruption

The push for domestic high-tech manufacturing coincides with intensified global competition for tech talent, notably with China. States like Arizona are actively investing in training programs to address the skills gap, with semiconductor companies collaborating with local colleges and universities. Though, the accelerating advancement of Artificial Intelligence introduces a new layer of complexity. Recent observations suggest that AI-driven automation may render some newly created jobs obsolete before workers can even be trained for them.

nvidia CEO Jensen Huang recently showcased humanoid robots capable of manufacturing AI servers, hinting at a future where robots assist-or perhaps replace-human workers. This potential for “jobless growth,” where economic expansion doesn’t translate into job creation, is a growing concern among economists and policymakers.

Immigration policies Add to the Challenge

The situation is further complicated by evolving immigration policies.New restrictions, such as a proposed $100,000 fee for H1B visas, threaten to limit the influx of foreign workers who have historically been vital to the advanced manufacturing sector.This creates additional pressure to cultivate a domestic talent pool.

Global Tech Developments: China and India

While the U.S. grapples with its workforce challenges, other nations are making strategic moves. China is offering substantial electricity subsidies to data centers utilizing domestically produced chips, aiming to reduce reliance on foreign technology and compete with the U.S.in the semiconductor industry. This initiative is supported by China’s centralized and often cheaper energy grid.

India,simultaneously occurring,has emerged as an attractive destination for foreign investment and capital. South Korean conglomerates, including LG and Hyundai Motor, are listing their Indian subsidiaries on the Indian stock market to fuel expansion. Moreover, tech giants like Google and Perplexity are partnering with Indian telecom companies to broaden access to AI services.

Did You Know? according to a recent Deloitte report, the manufacturing skills gap in the U.S. could cost the industry $1 trillion by 2030.

Foxconn’s Automation Initiative

Foxconn,a major player in electronics manufacturing,is accelerating its automation efforts. The company plans to deploy humanoid robots to its Texas facility within months to produce AI servers. This represents a significant step towards integrating robotics into its production processes, aiming to enhance efficiency and output.

Country Key Strategy impact on Manufacturing
United States Reshoring, investment in training Facing workforce shortages and AI disruption
China Subsidies for domestic chip usage Reducing reliance on foreign tech, boosting domestic industry
India Attracting foreign investment, AI partnerships Expanding tech industry, growing capital market

The Future of Work in Manufacturing

The convergence of reshoring, automation, and AI presents both opportunities and challenges for the manufacturing sector. while automation can improve efficiency and reduce costs, it also raises concerns about job displacement and the need for workforce retraining. Investing in education and skill development programs will be paramount to ensuring a smooth transition and equipping workers with the skills needed for the jobs of the future. Beyond technical skills, adaptability, problem-solving abilities, and a willingness to learn will be highly valued in the evolving manufacturing landscape.

Frequently Asked Questions about US Manufacturing

Q: What is “reshoring”?

A: Reshoring refers to the process of bringing manufacturing jobs and production back to the United States from overseas.

Q: What is driving the push for reshoring?

A: Supply chain disruptions, geopolitical concerns, and government policies are primary drivers of reshoring efforts.

Q: How is AI impacting the manufacturing workforce?

A: AI-powered automation has the potential to displace some manufacturing jobs, but also to create new roles requiring different skill sets.

Q: What is being done to address the skills gap in manufacturing?

A: Investments in training programs, partnerships between companies and educational institutions, and efforts to attract foreign talent are all part of the solution.

Q: What role do immigration policies play in the manufacturing workforce?

A: Immigration policies can significantly impact the availability of skilled labor in the manufacturing sector.

Q: How is China responding to the US reshoring initiative?

A: China is investing in its domestic semiconductor industry and offering incentives to encourage domestic chip usage.

Q: What opportunities does India present in the global manufacturing landscape?

A: india’s growing economy and young population make it an attractive destination for foreign investment and manufacturing partnerships.

What steps do you think are most critical to bridging the manufacturing skills gap? How will AI ultimately reshape the future of work in the United States?

Share your thoughts in the comments below!

How is DARPA’s focus on AI safety and robustness influencing the advancement of collaborative intelligence systems?

Advanced AI: The US’s Joint Training of Humans and Robots in artificial Intelligence Development

The Rise of Collaborative Intelligence

The United States is at the forefront of a revolutionary shift in artificial intelligence (AI) development – moving beyond solely relying on human programmers and data scientists to actively incorporating robotic process automation (RPA) and AI-powered robots directly into the creation and refinement of AI systems. This isn’t about robots replacing humans; it’s about human-robot collaboration accelerating innovation and tackling complexities previously insurmountable. This approach, often termed collaborative intelligence, is reshaping the landscape of machine learning (ML), deep learning, and the broader AI industry.

DARPA’s Pioneering Role & AI Research Funding

The Defense Advanced Research Projects Agency (DARPA) has been instrumental in funding and spearheading much of this research. Programs like the Assured Autonomy initiative demonstrate a commitment to building AI systems that are not only powerful but also reliable and trustworthy – a critical need for defense applications, but equally important for civilian sectors like healthcare and finance.

* Focus Areas: DARPA’s funding prioritizes:

* AI safety: Ensuring AI systems operate within defined ethical and operational boundaries.

* Explainable AI (XAI): Developing AI models whose decision-making processes are transparent and understandable to humans.

* Robust AI: Creating AI that can withstand adversarial attacks and operate reliably in unpredictable environments.

* Investment Trends: Recent reports indicate a meaningful increase in US government investment in AI research, with a significant portion allocated to projects involving human-robot teams. This includes funding for universities like MIT, Carnegie Mellon, and Stanford, all leaders in AI and robotics.

How Humans and Robots are Collaboratively Developing AI

The core concept revolves around leveraging the strengths of both humans and robots. Humans excel at:

* Abstract reasoning: Identifying patterns and making connections that AI currently struggles with.

* Creative problem-solving: Generating novel solutions to complex challenges.

* Ethical considerations: Applying moral judgment to AI development and deployment.

Robots and AI systems excel at:

* Data processing: Analyzing massive datasets far beyond human capacity.

* Repetitive tasks: Automating tedious and time-consuming processes.

* Precision and accuracy: Performing tasks with a level of consistency humans cannot match.

Here’s how this collaboration manifests in practice:

  1. Automated Data Labeling: Robots equipped with computer vision and natural language processing (NLP) are used to pre-label large datasets, significantly reducing the workload for human annotators. Humans then review and refine the robot-generated labels, improving accuracy and efficiency.
  2. AI Model Testing & Validation: Robots can systematically test AI models across a wide range of scenarios, identifying vulnerabilities and biases that might be missed by human testers.
  3. Generative AI Enhancement: Humans provide high-level creative direction, while AI algorithms generate variations and refine designs, accelerating the development of new products and solutions. This is particularly relevant in fields like drug discovery and materials science.
  4. Code Generation & Debugging: AI-powered coding assistants, like GitHub copilot, are increasingly used by human developers to write and debug code, boosting productivity and reducing errors.

Real-World applications & Case Studies

* Autonomous vehicle Development: Companies like Waymo and Cruise utilize extensive simulation environments powered by AI to train and test their self-driving algorithms. Human engineers oversee the process, analyzing data and making adjustments to improve performance and safety.

* Healthcare diagnostics: AI algorithms are being trained to analyze medical images (X-rays, MRIs, CT scans) to detect diseases like cancer. Radiologists work alongside these systems, reviewing the AI’s findings and providing their expert judgment. A study published in The Lancet Digital Health (2024) showed a 15% increase in diagnostic accuracy when radiologists used AI-assisted tools.

* Cybersecurity Threat Detection: AI-powered security systems are used to identify and respond to cyber threats in real-time. Security analysts monitor the AI’s actions, investigate potential incidents, and refine the system’s algorithms to improve its effectiveness.

* NASA’s Robotic Exploration: NASA leverages AI and robotics for space exploration, using robots to collect data, analyze samples, and perform tasks in hazardous environments. Human scientists and engineers remotely control and monitor these robots,providing guidance and making critical decisions.

Benefits of Joint Human-Robot AI Development

* Accelerated Innovation: Faster development cycles and quicker time-to-market for new AI-powered products and services.

* Improved AI Quality: More robust, reliable, and trustworthy AI systems.

* Reduced Costs: Automation of repetitive tasks lowers development and operational expenses.

* Enhanced Human Capabilities: AI tools augment human intelligence, allowing experts to focus on higher-level tasks.

* Addressing the AI Talent Gap: AI-powered tools can help bridge the shortage of skilled AI professionals.

Practical Tips for Implementing Collaborative AI

* Invest in Data Infrastructure: Ensure you have the necessary infrastructure to collect, store, and process large datasets.

* focus on Explainability: Prioritize the development of XAI models to build trust and transparency.

* Embrace Continuous Learning: Establish a culture of continuous learning and experimentation.

* Prioritize Ethical Considerations:

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Economy

Chinese Robotaxi IPOs, Toyota Earnings, and Indonesia’s GDP: A Snapshot of Latest Financial Developments

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

Asian economic Outlook: Key Events and Trends This Week

Table of Contents

The Asian economic landscape is set for a busy week, with meaningful developments anticipated across several key nations. From indonesia’s assessment of its populist economic policies to crucial IPOs in Hong Kong, investors and policymakers are bracing for a period of intense activity. This report delivers a concise overview of the events to watch.

Indonesia’s Economic Performance Under Scrutiny

Indonesian President Prabowo Subianto has completed his first year in office, and the nation is poised to release its third-quarter Gross Domestic Product (GDP) data this week. Economists predict a growth rate of approximately 5%, fueled by the government’s social support programs for lower-income households. These initiatives aim to bolster domestic consumption, a critical driver of economic expansion.

China‘s Robotaxi Revolution Gains Momentum

China is accelerating its investment in autonomous vehicle technology,especially in the realm of robotaxis. Companies like Pony.ai and WeRide have recently secured approval to operate in major cities such as Beijing and Guangzhou. This week marks a significant milestone as both companies prepare to debut on the Hong Kong Stock Exchange, seeking additional funding to navigate the increasingly competitive market. According to a recent report by McKinsey, the global autonomous vehicle market is projected to reach $1.5 trillion by 2030.

Hong Kong Financial Summit Attracts Global Leaders

The Hong Kong Monetary Authority will host its annual financial summit, attracting financial leaders from around the world. Chinese Vice Premier He Lifeng is scheduled to deliver a keynote address on Tuesday, promising insights into China’s economic outlook and policies. This event serves as a vital platform for international dialog and collaboration in the financial sector.

Key Corporate Earnings and Economic data

Several prominent companies will unveil their latest financial results this week, providing crucial insights into their performance and future prospects. These include Grab, Toyota Motor, Marubeni, Mitsubishi Corp., Nintendo, Itochu, Mitsui & Co., Mitsubishi Motors, SoftBank, Nippon Steel, Suzuki Motor, Honda Motor, and Mazda Motor. Additionally, economic data releases from Vietnam (Purchasing Managers Index), singapore (retail sales), and the Philippines (jobs report) will offer a snapshot of regional economic health.

Snapshot of Key Earnings Dates

Date Company
Tuesday Grab, Marubeni, Mitsubishi corp.,Nintendo
Wednesday Toyota Motor
Thursday Suzuki Motor,Nissan Motor
Friday mazda Motor,Honda Motor

Singaporean Banks Face Margin Pressure

Singapore‘s major banks – DBS Group Holdings,United Overseas Bank,and Oversea-Chinese Banking Corp. – are set to release their third-quarter earnings. Recent interest rate cuts by the U.S. Federal Reserve are expected to put pressure on lending margins for these institutions, prompting them to seek strategies for maintaining profitability.

Shanghai Hosts China International Import Expo

The annual China International Import expo (CIIE) will be held in Shanghai, featuring over 4,100 companies from 155 countries, including industry giants like Bayer and Coach. This event underscores China’s commitment to expanding trade relations and fostering international cooperation, even amidst ongoing trade discussions with the United States. A recently extended tariff truce between beijing and Washington aims to provide stability to the global trade landscape.

Understanding Robotaxi Technology

Robotaxis represent a significant advancement in autonomous vehicle technology, utilizing a combination of sensors, artificial intelligence, and elegant software to navigate and operate without human intervention. The development of this technology faces ongoing challenges,including regulatory hurdles,public safety concerns,and the need for robust cybersecurity measures. Though, the potential benefits – reduced traffic congestion, improved road safety, and increased accessibility – are driving considerable investment and innovation in the sector.

Frequently asked Questions About the Asian Economic outlook

What impact will these economic shifts have on global markets?

How will the ongoing technological advancements in Asia reshape the future of work?

stay tuned to Archyde for continued coverage of these developing stories and their implications for the global economy.

What factors could cause a delay or cancellation of the planned robotaxi IPOs in China?

Chinese Robotaxi IPOs, Toyota Earnings, and Indonesia’s GDP: A Snapshot of Latest Financial Developments

The Rise of Autonomous Vehicle Investment: Chinese Robotaxi IPOs

The autonomous vehicle sector is heating up, notably in China, with several robotaxi companies signaling their intent to go public. This wave of potential robotaxi IPOs represents a significant milestone for the industry and a key indicator of investor confidence in autonomous driving technology.

* WeRide: Widely considered a frontrunner,WeRide is aiming for a Hong Kong IPO,potentially raising billions. Their valuation is a key point of interest for investors in AI and the future of transportation.

* AutoX: Another major player, AutoX, is also exploring IPO options, focusing on its Level 4 autonomous driving capabilities. This highlights the growing competition within the Chinese autonomous vehicle market.

* pony.ai: While facing regulatory hurdles in the US, Pony.ai continues to operate and develop its technology in China, with an IPO remaining a long-term goal.

These ipos aren’t just about raising capital; they’re about establishing market leadership and attracting talent. The success of these offerings will likely influence further investment in robotics and AI-driven transportation solutions globally. The implications for urban mobility are substantial, potentially reshaping city landscapes and commuting patterns.

Regulatory Landscape & Investment Risks

Despite the excitement,potential investors should be aware of the regulatory complexities surrounding robotaxis. China’s government is taking a cautious approach, prioritizing safety and data security.

* Data Privacy Concerns: Strict regulations regarding data collection and usage are impacting the advancement and deployment of autonomous vehicles.

* Liability Issues: Establishing clear liability frameworks in the event of accidents remains a significant challenge.

* Geopolitical Factors: US-china tensions could also influence investment flows and market access.

Toyota’s Q3 2025 Earnings: Navigating a changing Automotive Landscape

Toyota Motor Corporation recently released its Q3 2025 earnings report,revealing a mixed bag of results. While overall profits remain strong, the company is facing headwinds from rising material costs and the accelerating transition to electric vehicles (EVs).

* Profit Figures: Toyota reported a[InsertActualQ32025ProfitFiguresHere-[InsertActualQ32025ProfitFiguresHere-research needed],a [Percentage Increase/Decrease] compared to the same period last year.

* EV Investment: The company has considerably increased its investment in EV technology, aiming to launch [Number] new EV models by [Year]. This is a direct response to growing demand for sustainable transportation and stricter emission standards.

* Supply Chain Challenges: Ongoing disruptions in the global supply chain, particularly for semiconductors, continue to impact production volumes. This is affecting automotive manufacturing across the industry.

Toyota’s strategy focuses on a multi-pathway approach, including hybrid vehicles, fuel cell vehicles, and battery evs. This contrasts with some competitors who are going all-in on battery EVs. The effectiveness of this strategy will be crucial in determining Toyota’s long-term success in the evolving automotive industry.

Toyota’s Hybrid Technology: A Competitive Advantage?

Toyota’s long-standing leadership in hybrid technology provides a significant competitive advantage. Hybrid vehicles offer a bridge between traditional internal combustion engines and fully electric vehicles, appealing to consumers who are hesitant to switch to evs due to range anxiety or charging infrastructure limitations. This positions Toyota well to capitalize on the growing demand for eco-friendly vehicles.

Indonesia’s GDP Growth: A Southeast Asian economic Powerhouse

Indonesia’s economy continues to demonstrate resilience, with GDP growth reaching[InsertActualQ32025GDPGrowthRateHere-[InsertActualQ32025GDPGrowthRateHere-research needed]in Q3 2025. This growth is driven by strong domestic consumption, rising commodity prices, and increased foreign investment.

* Key Growth Drivers:

* Commodity Exports: Indonesia is a major exporter of coal, palm oil, and other commodities, benefiting from rising global prices.

* Domestic Consumption: A growing middle class and increasing disposable incomes are fueling domestic demand.

* Infrastructure Development: Government investment in infrastructure projects is boosting economic activity.

* Investment Climate: Indonesia is actively seeking to attract foreign investment, particularly in manufacturing and infrastructure. The government is implementing policies to improve the business environment and streamline regulations.

* Digital Economy: Indonesia’s digital economy is booming, driven by a young and tech-savvy population. E-commerce, fintech, and digital services are experiencing rapid growth.

Challenges to Indonesia’s Economic Outlook

Despite the positive outlook, Indonesia faces several challenges:

* Inflation: Rising global inflation is putting pressure on prices in Indonesia.

* Geopolitical Risks: Global geopolitical instability could disrupt trade and investment flows.

* Climate Change: Indonesia is vulnerable to the impacts of climate change, including rising sea levels and extreme weather events.

Cross-Market Correlations & Investor Implications

The developments in these three seemingly disparate areas – Chinese robotaxis, Toyota’s earnings, and Indonesia’s GDP – are interconnected.

* Technology Investment: The success of Chinese robotaxi IPOs

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Economy

Gyeongju Awaits: South Korea’s APEC Day 2 Commences with Global Engagement and Key Developments

by Daniel Foster - Senior Editor, Economy
written by Daniel Foster - Senior Editor, Economy

GYEONGJU, South Korea — South Korea is hosting this year’s Asia-Pacific Economic Cooperation forum in the southeastern city of Gyeongju. Beyond the leaders summit itself, which runs Friday and Saturday, a number of high-pressure bilateral meetings are being held.

South Korean President Lee Jae Myung, who took office in June, is in the spotlight as counterparts including U.S. President Donald Trump, Chinese President Xi Jinping and new Japanese Prime Minister Sanae Takaichi converge in his country.

Follow the flurry of diplomacy over the coming days with Nikkei Asia.

Further reading:

Japan, South Korea leaders vow to foster ‘future-oriented’ relations

Xi tells Trump that ‘reality demands’ China-US friendship

US and South Korea agree to trade deal at APEC summit

Trump and Xi supercharge South Korea’s APEC: 5 things to watch

Trump in Japan: How the US president’s stay unfolded

Japan, US agree to shipbuilding cooperation as China builds capacity

Here are the latest updates (local time):

Saturday, November 1

9:30 a.m.

North Korea on Saturday denounced the denuclearization of the Korean Peninsula as a “pipe dream” that can never be realized, in a comment that comes as South Korean President Lee Jae Myung and Chinese President Xi Jinping are set to discuss the issue on Sunday, according to North Korea’s KCNA news agency.

North Korea’s Vice Foreign Minister Pak Myong Ho criticized South Korea for seeking to raise the denuclearization issue whenever an opportunity arises. “We will show with patience that denuclearization is a ‘pipe dream’ which can never be realized even if it talks about it a thousand times,” Pak said in a statement.

9:10 a.m. Good morning from Gyeongju. After a gala dinner and show last night, APEC leaders will attend the final session of the summit this morning, followed by the obligatory photo shoot and a press conference by host South Korean President Lee Jae Myung. We also expect a bilateral meeting between Lee and Chinese leader Xi Jinping, and a possible joint declaration.

Friday, October 31

7:14 p.m. We are wrapping up our blog after Day 1 of the APEC summit. Come back here again tomorrow for more live updates.

7:10 p.m. Takaichi spoke to media after the talks that lasted around 30 minutes. The Japanese prime minister said she “frankly” expressed concerns over a range of issuesincluding China’s activity in the East China Sea, China’s export controls on rare earths and the safety of Japanese citizens living in China. She also urged China to resume imports of Japanese seafood and beef.

Takaichi also said that the Chinese side brought up the topic of Taiwan, without elaborating. She said she told Xi that favorable cross-strait relations are important for the region’s safety and security.

6:25 p.m. In his opening remarks, Xi told Takaichi that as the world rapidly undergoes a once-in-a-century transformation, the two countries should advance the “long-term, healthy and stable development” of China-Japan relations.”

Takaichi said that she wants to solve “various issues and challenges” between the two countries and produce concrete results. She also said she wants to “actively engage in dialogue” with the Chinese leader.

Both sides reaffirmed their “strategic and mutually beneficial relationship” and agreed to build “constructive and stable” ties.

6:04 p.m. Something to digest as we await the readouts from the Xi-Takaichi meeting? How about tonight’s menu?

The APEC Economic Leaders’ Meeting Gala Dinner is scheduled for 8 p.m. this evening and South Korea’s presidential office announced that participants will dine on dishes that “feature a harmonious fusion of Korean and Western cuisine.”

About 400 guests, including the leaders of APEC member states and their spouses, will converge at the Lahan Select Gyeongju hotel to dig into a menu prepared by chef Edward Lee. On the table will be Korean staples the name bibimbap (mixed rice and vegetable) and galbijjim (stewed ribs) made with locally sourced ingredients. There will be Western pies and caramel for dessert.
The evening will wrap up with performances of traditional Korean music and dance.

Perhaps out of concern that some guests my not like spicy food, the menu also includes “mild white kimchi that can be enjoyed by everyone.”

5:12 p.m. Xi meets with Japanese Prime Minister Sanae Takaichi, Xinhua reports. The pair exchanged greetings in a lounge where leaders gathered earlier today, but this will be the first proper conversation between the two.

Note that Xi did not send Takaichi a congratulatory message on her inauguration earlier this month, with the country’s congratulations instead coming from Premier Li Qiang. Xi had sent messages to all of Takaichi’s predecessors since he became president in March 2013.

Prior to the meeting, Takaichi tweeted about the summit in English.

4:46 p.m. After Carney, Xi is now meeting with Thai Prime Minister Anutin Charnvirakul, Reuters reports, citing Chinese state media.

4:28 p.m. In a speech in Gyeongju, Nvidia founder and CEO Jensen Huang said his company will work more closely with South Korea’s government and tech companies to build out the nation’s AI infrastructure.

“Korea’s leadership in technology and manufacturing positions it at the heart of the AI industrial revolution — where accelerated computing infrastructure becomes as vital as power grids and broadband,” said Huang. “Just as Korea’s physical factories have inspired the world with sophisticated ships, cars, chips and electronics, the nation can now produce intelligence as a new export that will drive global transformation.”

4:20 p.m. Nikkei Asia’s Wataru Suzuki and Ken Moriyasu analyze the Xi-Trump summit, concluding that China and the U.S. pulled some trade war punches to fight another day.

4:05 p.m. Chinese President Xi Jinping is meeting with Canadian Prime Minister Mark Carney on the sidelines of the APEC summit, Reuters reported, citing Chinese state media.

Earlier on Friday, Carney said at a business event that the world of rules-based liberalized trade and investment had passed as the global economy was going through one of the most profound changes since the fall of the Berlin Wall in 1989, Reuters reported.

Carney also said that Canada aimed to double its non-U.S. exports over the course of the next decade. U.S. President Donald Trump said on Saturday he was increasing tariffs on Canada by an additional 10% “above what they’re paying now,” as he reacted again to an ad by Canada’s Ontario province.

3:40 p.m. Japanese Prime Minister Sanae Takaichi tweets a photo of her briefly meeting Chinese President Xi Jinping in a lounge at the conference venue. The pair are expected to hold a summit later today — the first since Takaichi became premier 10 days ago.

3:25 p.m. The spokesperson for South Korean President Lee Jae Myung said at a briefing that Lee will meet on Saturday with Chinese President Xi Jinping and that the two will discuss “people’s livelihoods and denuclearization.”

Spokesperson Kang Yu-jung stressed that as Xi will be on an official state visit in South Korea, the proceedings for his meeting with Lee will be “on par” with the red carpet rolled out for U.S. President Donald Trump on Wednesday.

The decision to highlight a commitment to equal treatment for the leaders of the world’s two superpowers could be a reflection of the careful diplomatic balance Seoul must strike between its main ally Washington and Beijing, its largest trading partner and regional heavyweight.

2:30 p.m. U.S. Treasury Secretary Scott Bessent delivered remarks at the leaders’ informal dialogue.

He said the U.S. aims to build “a more connected and resilient region” through “fair and secure trade and investment flows.” He noted that the Trump administration is “rebalancing its trade relationships” to ensure “each country operates on fair and reciprocal terms.”

He described a “more balanced global system” as one grounded in “transparency, market access, and fair competition.” Bessent highlighted U.S. efforts to “secure and diversify global supply chains” by working with trading partners to make production networks “more secure and reliable for all.”

Bessent said Trump “acted swiftly and decisively” under the International Emergency Economic Powers Act to confront threats to economic stability, including “the flow of illicit fentanyl and precursors” and vulnerabilities in access to rare earth elements.

He closed by saying that “economic security is national security,” adding that “when supply chains are strong, markets are efficient, and competition is fair, every economy benefits.”

1:42 p.m. APEC leaders are working to finalize a joint declaration as divisions over trade and multilateralism continued to test the unity of their 21-member bloc, Nikkei Asia’s Kim Jaewon writes.

South Korean Foreign Minister Cho Hyun said that “talks are progressing toward consensus,” though added it is hard to say if the term “free trade” will appear in the declaration.

Cho’s country, which is hosting APEC for the first time in two decades, is playing a mediating role to ensure the summit ends with agreement on the Gyeongju Declaration.

Analysts say that some disagreements between the U.S. and other member economies over multilateralism in trade are possible.

“The point of contention is probably that … there are many member economies which say ‘we should strengthen the multilateral system and bolster the multilateral framework,'” said Lee Jae-min, professor of international law at Seoul National University School of Law. “However, the U.S., along with some nations sharing a similar stance, may have reservations about pushing it too hard.”

1:29 p.m. Spouses of the leaders have been taken on a tour around Gyeongju.

12:50 p.m. Chinese President Xi Jinping on Friday put forward a five-point proposal for promoting a universally beneficial and inclusive economic globalization and building an Asia-Pacific community, according to Chinese state media.

At the first session today, he called for joint efforts to safeguard the multilateral trading system, build an open regional economic environment, maintain the stability and smooth flow of industrial and supply chains, promote digitalization and greening of trade, as well as promote universally beneficial and inclusive development.

12:45 p.m. The leaders are now sitting down for lunch with business leaders from APEC member nations. There has been a separate CEO summit running this week in Gyeongju. South Korea’s Lee will give a speech.

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