SOL AI Semiconductor Materials, Components & Equipment ETF Surpasses 500 Billion Won in Net Assets

Shinhan Asset Management announced on January 22 that the net assets of the 'SOL AI Semiconductor Materials, Components & Equipment ETF,' the largest domestic ETF focused on semiconductor materials, components, and equipment, have surpassed 500 billion won.

The net assets grew from 464.5 billion won at the end of last year to 511.3 billion won as of January 21, 2026. The SOL AI Semiconductor Materials, Components & Equipment ETF is a product that selectively invests in domestic AI semiconductor materials, components, and equipment companies with core competitiveness.

The ETF is designed to capture the structural growth trends of the entire semiconductor industry through a portfolio that covers both front-end and back-end processes. Recently, with improvements in the memory sector, there are growing expectations for benefits and value re-evaluation across the entire materials, components, and equipment segment, including legacy semiconductors, front-end, and back-end processes. In the legacy segment, as factory utilization rates approach their limits and rapid supply increases are difficult, it is assessed that, in the short term, price (P) factors rather than shipment volume (Q) may help defend and improve performance.

For the front-end process, new investments and process miniaturization by comprehensive semiconductor companies such as Samsung Electronics and SK Hynix are expected to drive increased demand for equipment and process materials. When new line investments and process conversions occur simultaneously, the complexity of processes rises, leading to a more sophisticated equipment mix and higher capital expenditure (CAPEX) efficiency per wafer, which is favorable for materials, components, and equipment companies.

In the back-end process (OSAT/packaging/testing), memory price increases generally lead to higher utilization rates and increased testing and packaging volumes, resulting in a lagging benefit during sector upturns. However, since the back-end segment is highly competitive, continuous monitoring is needed, focusing more on utilization rates and product mix improvements rather than unit prices.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "When the memory sector improves, it generally leads to price increases, recovery in utilization rates, and higher testing and packaging volumes, which in turn benefits materials, components, and equipment companies involved in both front-end and back-end processes." He added, "In a sustained semiconductor supercycle, after the share prices of comprehensive semiconductor companies such as Samsung Electronics and SK Hynix lead the way, it is important to pay attention to the subsequent value re-evaluation phase of high-quality materials, components, and equipment companies."

Major holdings of the SOL AI Semiconductor Materials, Components & Equipment ETF include Isu Petasys, which has established a position in the high-performance semiconductor substrate field; Hanmi Semiconductor, with global competitiveness in the TC bonder sector; and Leeno Industrial, which aligns with the on-device AI expansion trend. Other holdings include EO Technics, Wonik IPS, HPS, Jusung Engineering, Techwing (semiconductor equipment companies), ISC, S&S Tech, TCK (semiconductor component companies), and Hana Micron (OSAT company), covering the entire semiconductor value chain.

In terms of technology trends within the semiconductor market, companies related to HBM account for about 55%, while those related to process miniaturization account for about 45%. By value chain classification, the ETF diversifies investments as follows: materials (about 14%), components (about 16%), equipment (about 46%), and substrates and other companies (about 24%).

Kim added, "Since the semiconductor manufacturing process is divided into multiple stages and various materials, components, and equipment companies are positioned at each stage, it is not easy to approach individual stocks, making investment through ETFs more efficient."