(Reuters) - Citi expects increased momentum in Asian fundraising for tech companies into 2025, driven by developments in artificial intelligence and robust activity in India and Taiwan, the Wall Street bank said on Thursday.

The bank, which raised the most funds for tech companies in Asia outside Japan, estimated at least a 10% increase in fundraising volumes in the technology, media and telecom sector in Asia this year, from $70 billion in 2024.

AI-driven funding, including hardware supply chain and digital infrastructure such as data centres, towers and fibre will continue to underpin issuance, said Ho-Yin Lee, the bank's Hong Kong-based Asia investment banking head of Technology & Communications.

"The AI theme is very important and will continue to dominate," Lee told Reuters. "I think this year we are going to see more focus... around practical applications and the benefits AI can create for a company's financials."

Lee said companies were better prepared for Donald Trump's return to the U.S. presidency and the potential impact of his policies on the AI sector.

Trump announced on Tuesday a private sector investment of up to $500 billion to fund AI infrastructure.

Lee said the outlook for deals in India will continue to be strong and activity in the hardware supply chain in Taiwan is also expected to remain robust. In Hong Kong, he expects a few initial public offerings that were in the backlog coming to the market.

The anticipated growth in Asia comes against weakness seen in the pan-APAC new listings, when total fundraising dropped 33% in 2024 from a year ago with China - once a pillar underpinning regional dealmaking - declining 74%.

Citi assisted Asian ex-Japan clients in raising $4 billion through equity share sales and $2 billion in debt issuance in 2024, with the total funds raised ranking top in Asia ex-Japan compared with rival banks, the firm said, citing industry data.

This includes Alibaba's ( BABA ) $5 billion convertible bond issuance and Taiwanese firm WT Microelectronics' acquisition of Canada's Future Electronics in a $3.8 billion deal.

(Reporting by Sneha Kumar in Bengaluru and Selena Li in Hong Kong; Editing by Emelia Sithole-Matarise)