LSEG FTSE Russell has identified semiconductors, data centres, power systems and critical materials as the key engines of this transition, with Asia occupying a central role.

LSEG FTSE Russell’s Indrani De and Belle Chang, the authors of ‘In Digital AI to Physical AI Enablers: Asia Benefits’, which was published in July 2026, contend that the next phase of the artificial intelligence (AI) boom will be driven less by software and more by the physical infrastructure that powers AI. Asia occupies a central position in the global physical AI value chain  The report identified five key segments within this ecosystem: semiconductors, semiconducto