‘Semiconductor ETF Leader’ Mirae Asset Asset Management Targets AI Semiconductor Market

A new exchange-traded fund (ETF) that maximally invests in stocks related to ‘HBM (High Bandwidth Memory),’ currently the hottest topic in the semiconductor market, is set to launch.

According to the financial investment industry on the 20th, Mirae Asset Global Investments will launch the 'TIGER AI Semiconductor Core Process ETF' on the 21st. Unlike existing semiconductor ETFs, this fund focuses on investing in domestic small and mid-sized semiconductor companies that have a high correlation with HBM and possess advanced AI semiconductor manufacturing technologies.

The ETF’s underlying index is the ‘iSelect AI Semiconductor Core Process,’ which, as of the 13th, has the highest proportion of HBM-related stocks among domestic small and mid-cap semiconductor indices. Major constituent stocks include Hanmi Semiconductor (17.05%), EO Technics (8.66%), Isu Petasys (7.89%), and Hana Micron (7.21%). Samsung Electronics and SK Hynix, which are affected by stagnant demand in mobile, cloud servers, and PCs, are excluded, and the ETF is composed solely of companies expected to benefit the most from the AI semiconductor market.

It is already widely agreed that AI will drive the growth of future semiconductors. Leading the global surge this year with Chat GPT, major global big tech companies such as Microsoft, Google, Tesla, Meta, Amazon, Alibaba, and Baidu have entered the generative AI race, and semiconductor demand for building generative AI servers is expected to skyrocket.

Accordingly, the 'TIGER AI Semiconductor Core Process ETF' focuses its investment on HBM, the core of AI semiconductors. HBM is a semiconductor optimized for AI semiconductor demand that significantly increases bandwidth to process large volumes of data at once. Manufacturing HBM semiconductors requires advanced ‘packaging’ core process technology, and currently, South Korea accounts for about 90% of the global HBM market. These companies are expected to enjoy special benefits alongside the growth of AI semiconductors.

To enable investors to benefit from the shifting landscape of the semiconductor market, Mirae Asset Global Investments is introducing the 'TIGER AI Semiconductor Core Process ETF,' which focuses on the growth potential of domestic HBM, and plans to continue leading the semiconductor ETF market. Currently, Mirae Asset Global Investments dominates the semiconductor ETF market. As of November 13, there are seven TIGER ETFs focused on semiconductor investments, with total assets under management (AUM) reaching 2.4369 trillion KRW. This represents an overwhelming scale, accounting for 60% of the total assets of all semiconductor ETFs listed on the Korea Exchange.

Investors can build diverse portfolios tailored to their preferences and investment goals through TIGER ETFs. For example, if one wants to invest broadly across the semiconductor sector, they can choose ‘TIGER Semiconductor’; if focusing on the top 10 semiconductor stocks including Samsung Electronics and SK Hynix, ‘TIGER Fn Semiconductor TOP10’ is suitable; and for investing in U.S. semiconductor companies, including semiconductor design firms listed on NASDAQ and the New York Stock Exchange, ‘TIGER U.S. Philadelphia Semiconductor NASDAQ ETF’ can be utilized.

Kim Nam-gi, Head of ETF Management at Mirae Asset Global Investments, said, “As a pioneer in semiconductor ETFs, TIGER ETF offers a diverse lineup so that investors can benefit from semiconductor growth. Through TIGER ETFs, investors can invest not only in leading domestic semiconductor companies but also in high-growth domestic semiconductor companies with core AI semiconductor process technologies via the TIGER AI Semiconductor Core Process ETF.”