Kiwoom Asset Management Launches 'Global AI Semiconductor & Power Semiconductor ETF'

"First Domestic Global AI and Power Semiconductor ETF Launch"

Kiwoom Asset Management will launch the 'KOSEF Global AI Semiconductor' and 'KOSEF Global Power Semiconductor' exchange-traded funds (ETFs) on the 21st. These new products come amid forecasts that the global semiconductor market will enter a full-fledged supercycle next year.

The 'KOSEF Global AI Semiconductor' ETF focuses on investing in 15 global AI semiconductor-related companies that are expected to benefit from the growth of the artificial intelligence (AI) market. As of the end of last month based on the underlying index, about 60% of the investment is allocated to three stocks that have gained significant attention for AI semiconductor design and production: NVIDIA (19.4%), AMD (20.3%), and TSMC (18.62%).

AI semiconductors are high-performance semiconductors capable of rapidly performing large-scale computations necessary for implementing AI technologies such as learning and inference. Leading companies in the graphics processing unit (GPU) sector include NVIDIA and AMD. Semiconductor foundry specialist TSMC effectively holds a monopoly on producing the main products of NVIDIA and AMD, thereby benefiting from the growth of the AI semiconductor market. This product invests about 60% in NVIDIA, AMD, and TSMC to capture the performance of large leading stocks. At the same time, approximately 40% is invested in other companies within the AI semiconductor value chain to seize opportunities for flexible stock price increases among mid- and small-cap stocks.

The 'KOSEF Global AI Semiconductor' ETF includes global intellectual property (IP) leaders such as Synopsys and Cadence, design house representative Lattice Semiconductor, OSAT specialist ASE, and Amkor, covering the entire spectrum of AI semiconductors. Power semiconductors are growing alongside new industries such as electric vehicles, data centers, and renewable energy power plants. Power semiconductors are essential when handling large amounts of electricity in harsh environments characterized by high temperature, high voltage, and high frequency, compared to conventional home appliances. They are electronic components responsible for power conversion, transformation, distribution, and control, used in most electronic products that consume electricity.

This product invests in 15 leading global companies related to power semiconductors, whose demand is expected to surge with the spread of electric vehicles. Representative investment stocks include U.S. power semiconductor companies Wolfspeed, ON Semiconductor, Coherent, German automotive semiconductor company Infineon, and STMicroelectronics, the largest semiconductor manufacturer in Europe based in Switzerland.

Jung Sung-in, Head of ETF Marketing at Kiwoom Asset Management, said, "Regarding AI, a mega trend that has permeated the global stock market this year, stock selection is expected to intensify next year. Core AI semiconductor stocks, whose growth in the AI industry directly translates into increased sales and profits, will receive greater attention from the market going forward," adding, "The transition to electric vehicles, expansion of renewable energy power generation, and data center server expansions are creating unprecedented changes and growth opportunities in the power semiconductor industry."

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