CSC Financial says AI-driven cost pressure has shifted to the materials end,
where exposure is fragmented and many leading suppliers are Japanese. Since H2
2025 bilateral tensions have shown signs of accelerating, tightening supply via
de-Japanization while AI-led demand-side inflation reinforces the effect. The
firm expects the de-Japanization theme to have further room to run and
recommends continued de-Japanization trades, prioritizing domestic powder
materials and fluorinated-polymer names for faster growth and accelerating
import-substitution opportunities.
