High Demand Surge for High Bandwidth Memory (HBM) Benefits 'SOL Semiconductor SoBuJang ETF'

Shinhan Asset Management's 'SOL Semiconductor SoBuJang Fn' is emerging as a leading exchange-traded fund (ETF) related to high-bandwidth memory (HBM) due to the rising value of related companies driven by increased demand expectations for HBM.

HBM is a high-performance memory chip that vertically connects multiple DRAMs to boost data processing speeds compared to conventional DRAM. It offers significant advantages such as much faster speeds, lower power consumption, and reduced space usage compared to existing memory chip technologies.

It is known as an essential semiconductor for handling large amounts of data and resources required for the commercialization of artificial intelligence (AI) applications and ChatGPT technology.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, stated, “The leading manufacturers of HBM memory chips include Samsung Electronics, SK Hynix, and Micron Technology, but the actual beneficiaries are expected to be high-quality SoBuJang (materials, parts, and equipment) companies. The SOL Semiconductor SoBuJang Fn ETF has about a 20% weighting in HBM value chain companies such as Hanmi Semiconductor, EO Technics, and Park Systems, the highest among domestic semiconductor ETFs, so it is expected to benefit the most from the spotlight on HBM,” he explained.

The SOL Semiconductor SoBuJang ETF has about a 9% weighting in Hanmi Semiconductor, considered the leading HBM stock, the highest among domestic semiconductor ETFs. Hanmi Semiconductor is a semiconductor post-process equipment manufacturer supplying TC bonders, flip-chip bonders, EMI shielding equipment, and other devices necessary for producing HBM semiconductors used in AI computations. Following ChatGPT, orders for TC bonder equipment to expand HBM mass production from clients are expected to increase, and since the beginning of the year, the stock has surged 306.96%, continuously hitting new highs, leading to predictions that it might become the next Ecopro.

Kim said, “With new demand emerging from AI servers and changes occurring in the semiconductor company ecosystem, market interest in post-process companies is growing. As the semiconductor industry’s rebound becomes visible, it is necessary to continuously focus on semiconductor SoBuJang companies that have high profit leverage during the stock price recovery cycle.”

The SOL Semiconductor SoBuJang ETF is characterized by a portfolio focused on high-quality SoBuJang companies excluding integrated semiconductor manufacturers. It invests intensively in 20 stocks, including representative semiconductor post-process companies such as ISC, Hana Micron, and SFA Semiconductor, along with HPSP, Lake Materials, SNS Tech, and Daeduck Electronics.

The one-month return is 14.93%, and since listing, it has recorded 32.87%, achieving the top performance among domestic semiconductor ETFs and recently surpassing 120 billion KRW in net assets.

This content was produced with the assistance of AI translation services.