KODEX US AI Semiconductor TOP3 Plus Listed

Samsung Asset Management announced on January 13 that it will list a new ETF, "KODEX US AI Semiconductor TOP3 Plus," which will focus investments on the three leading US AI semiconductor companies. This is the first product in Korea to invest heavily-about 62%-in the top three companies in the US semiconductor industry among ETFs investing in the US semiconductor sector.

KODEX US AI Semiconductor TOP3 Plus will concentrate approximately 62% of its portfolio on Nvidia, TSMC, and Broadcom, which are leading the semiconductor industry. These companies have established dominant positions in the graphics processing unit (GPU), foundry, and application-specific integrated circuit (ASIC) sectors, respectively, each considered an essential component of the AI semiconductor ecosystem. Due to the high technological entry barriers in AI semiconductors, competitors are unlikely to emerge easily, making an investment strategy focused on leading companies advantageous.

Nvidia is evolving from a provider of high-performance GPUs for AI computation into a comprehensive AI platform company. TSMC is the world's top foundry, leveraging its expertise in yield management for advanced processes and proprietary packaging technologies. Broadcom designs and supplies tensor processing units (TPUs) to Google. Furthermore, as a specialized company that helps big tech firms develop ASICs, Broadcom is regarded as the primary beneficiary of Google's expansion in TPU production.

In addition, the ETF will invest in other companies that form the AI semiconductor value chain and whose stock prices move in tandem with the AI industry, including AMD, Marvell, Micron, Rambus, SanDisk, Credo, and ARM. By focusing on leading AI semiconductor companies while also investing in key technology firms across the AI semiconductor value chain, the strategy aims to capture the full growth potential of the entire AI semiconductor industry.

With the rapid advancement of the AI industry and shifts in the global competition for technological supremacy, semiconductors are expected to continue benefiting as a core infrastructure. As big tech companies like Amazon and Microsoft expand their investments in AI data centers, the net profits of AI semiconductor companies such as Nvidia, TSMC, and Broadcom are projected to increase further.

Han Donghoon, a manager at Samsung Asset Management, stated, "Given the fast-evolving nature of the AI industry, the leading company in AI semiconductors continues to grow, so it is advantageous to adopt a strategy that focuses on investing in these industry leaders."

He added, "KODEX US AI Semiconductor TOP3 Plus selectively invests in leading companies in each core area of the AI semiconductor industry-such as GPUs, ASICs, ultra-high-speed networks, and high-performance memory-allowing investors to broadly participate in the industry's overall growth potential."