Singapore’s state-owned Temasek Holdings Pte plans to invest US$30 billion in the US market over the next five years as the firm remains cautious about putting money into China.
“The Americas is going to be and continue to be the largest recipient of capital,” Temasek’s head of North America Jane Atherton said in an interview on Monday.
Temasek’s investments this year in North and South America surpassed China for the first time in at least a decade.
Photo: Reuters
Investment in the Americas now accounts for 22 percent, or US$63 billion, of its portfolio.
China investments make up 19 percent of the portfolio, and those in Singapore account for 27 percent.
The firm oversaw S$389 billion (US$289 billion) of assets as of March, up from S$382 billion a year earlier.
China and the US are vying to dominate semiconductor manufacturing because of its links to artificial intelligence (AI) and other aspects of the digital economy.
The US is trying to limit the rise of its Asian rival by deploying export controls and tariffs, and even considering a rule that would curb China’s access to advanced semiconductor technology.
That US-China strife has left investors navigating a geopolitical tripwire as they seek to capture a piece of one of the hottest sectors in the market.
Atherton said there are ways to structure investments around certain constraints, such as taking passive public equity stakes in listed semiconductor companies.
In China, Temasek has avoided investing in geopolitically sensitive areas, instead focusing on large domestic companies. It is looking to make new investments in electric vehicle makers and biotech firms.
“We make sure we are not investing in businesses that are in the crosshairs of geopolitical tensions,” Atherton said.
For the US, she said Temasek is looking to invest in AI-related firms, as well as semiconductor and infrastructure plays such as data centers and the companies that power them. It can gain exposure to data centers through its own real-estate subsidiaries — Mapletree Investments Pte and CapitaLand Group Pte — or by investing alongside private equity firms, Atherton said.
Temasek has grown its US assets fivefold in the past decade.
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