Mirae Asset 'TIGER US AI Semiconductor Fabless ETF' Newly Listed

Mirae Asset Global Investments announced on the 24th that it will newly list the ‘TIGER US AI Fabless Semiconductor ETF’ on the Korea Exchange.

The TIGER US AI Fabless Semiconductor ETF invests in US fabless companies, which are at the core of the artificial intelligence (AI) semiconductor market. Fabless refers to semiconductor design companies without manufacturing facilities. They have recently been leading innovation in the AI semiconductor industry. AI performance is determined by cutting-edge high-performance AI semiconductors, and fabless companies focus solely on designing chips optimized for AI workloads. This allows them to respond quickly to the rapidly changing demands of the AI market. Major companies currently leading the global semiconductor market, such as Nvidia, AMD, Broadcom, Qualcomm, and ARM, are all fabless companies.

The ETF’s underlying index is the ‘Mirae Asset US AI Fabless Index.’ It is composed mainly of US-listed fabless companies and additionally includes IP (semiconductor circuit license) and EDA (electronic design automation tool) companies. IP companies hold licenses for semiconductor circuit design blocks, and EDA refers to software that designs circuits and detects errors. All are specialized semiconductor design companies without manufacturing facilities, known as fabs.

The ‘TIGER US AI Fabless Semiconductor ETF’ focuses on investing in US companies leading the fabless market. Currently, about 90% of the top 10 global fabless companies are US-based, and the IP and EDA markets are also dominated by US companies. The semiconductor industry is capital-intensive and requires advanced technology, making it difficult to catch up with leading companies. As of the 23rd, the investment weight of the top five fabless leading companies (Nvidia, Broadcom, AMD, Qualcomm, ARM) in the ‘TIGER US AI Fabless Semiconductor ETF’ is about 90%. The portfolio excludes legacy semiconductor companies such as IDM companies like Intel, which handle both manufacturing and design, and analog companies like Texas Instruments.

To commemorate the launch of the ‘TIGER US AI Fabless Semiconductor ETF,’ Mirae Asset Global Investments is conducting a listing event for trading customers. Customers who meet the daily trading and net purchase conditions for this ETF at SK Securities and Eugene Investment & Securities by the 24th will receive cultural gift certificates through a lottery and other means. Detailed event information can be found on each securities firm’s website.

Jung Eui-hyun, head of the ETF management team at Mirae Asset Global Investments, said, "As the semiconductor industry advances, R&D required for design and capital expenditure (CAPEX) needed for manufacturing cannot coexist." He added, "Through the TIGER US AI Fabless Semiconductor ETF, investors can focus on major US semiconductor fabless companies that have taken the lead in various fields of the AI market."

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