Emerging market equities have gained renewed attention in 2026, supported by the growing importance of Asian semiconductor companies within the global artificial intelligence supply chain. The strength of these businesses has given the asset class a clearer strategic role at a time when demand for advanced computing infrastructure continues to shape capital spending worldwide.
The MSCI Emerging Markets Index had risen by 22% in 2026 as of 1 June. A significant share of that increase came from TSMC, Samsung Electronics and SK Hynix, three companies with established positions in semiconductor manufacturing and memory technology. TSMC had gained 53%, while Samsung Electronics and SK Hynix had risen by 150% and 200% respectively.
This leadership reflects the importance of the products these companies supply. TSMC manufactures advanced chips used across artificial intelligence and high-performance computing applications, while Samsung Electronics and SK Hynix are major producers of memory products required by data centres and next-generation computing systems. Their scale, technical capabilities and position within global supply chains give them exposure to a long-term investment theme that extends beyond any single market cycle.
Information technology recorded a total return of 62.31 per cent during the year to 1 June, substantially ahead of other sectors. Between 1 March and 1 June, the sector returned 44.15%. This performance shows how strongly emerging markets are participating in the expansion of artificial intelligence infrastructure, rather than remaining dependent only on traditional drivers such as commodities, exports or domestic consumption.
The growing weight of leading technology companies also gives the benchmark greater exposure to businesses with global revenues and strategic relevance. Following the MSCI index rebalancing at the end of May, TSMC represented 14.5% of the index, Samsung Electronics accounted for 7.8% and SK Hynix held a 6.6% weighting. The ten largest companies represented 39% of the benchmark, while businesses associated with the artificial intelligence theme accounted for approximately 33%.
Previous emerging market cycles were driven by commodities, Chinese economic expansion or internet platforms. The current phase is more closely linked to digital infrastructure, advanced manufacturing and the computing capacity needed to support artificial intelligence adoption.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.
