KB Asset Management Launches 'RISE China AI Semiconductor TOP4 Plus ETF'

Focused Investment in Key Chinese Semiconductor Companies

KB Asset Management announced on March 10 that it will newly list the "RISE China AI Semiconductor TOP4 Plus ETF," which focuses on investing in key companies within China's artificial intelligence (AI) semiconductor industry.

The "RISE China AI Semiconductor TOP4 Plus ETF" is an exchange-traded fund (ETF) that invests in AI semiconductor companies listed in mainland China and Hong Kong. It concentrates investments in leading companies within core segments of the AI semiconductor value chain, such as AI chips, foundry, optical communication modules, and semiconductor equipment. Through this approach, investors can benefit from both the localization of Chinese semiconductors and the growth of the AI industry.

Recently, with the rapid growth of the AI industry, semiconductors have emerged as a key sector determining the competitiveness of countries. In the case of China, following U.S. semiconductor export restrictions, the country is accelerating the localization of its semiconductor industry by making the establishment of a domestic semiconductor supply chain a national strategy.

The Chinese government is actively supporting the semiconductor industry by establishing the third phase of the "Big Fund," worth approximately 66 trillion won. As AI demand is surging across various industries such as data centers, electric vehicles, and smart factories, expectations for growth in the Chinese semiconductor market are also rising. There is analysis that, based on the domestic market of 1.4 billion people, China has a high possibility of building its own independent semiconductor ecosystem despite U.S. sanctions.

The "RISE China AI Semiconductor TOP4 Plus ETF" reviews newly listed stocks every month and incorporates them into the index if they meet the criteria. This structure is designed to capture rapidly growing new AI semiconductor companies in China.

The portfolio consists of a total of 15 stocks, with the weight of each stock adjusted through four regular rebalancings per year. As of today, key holdings include Zhongji Innolight at 15.6%, Naura Technology Group at 14.5%, Hygon Information Technology at 14.2%, and Semiconductor Manufacturing International (SMIC) at 13.4%.

In addition, the ETF includes stocks such as Eoptolink Technology at 6.7%, Suzhou TFC Optical Communication at 5.8%, Cambricon Technologies at 4.8%, VeriSilicon Microelectronics at 3.9%, and Chaozhou Three-Circle Group at 3.2%.

Lee Junseok, Head of ETF Marketing at KB Asset Management, stated, "In the early stages of the AI semiconductor industry, there is a high possibility that a winner-takes-all structure will emerge, centered around key companies," adding, "The 'RISE China AI Semiconductor TOP4 Plus ETF' is a product that focuses on core AI semiconductor companies in mainland China and Hong Kong, aiming to capture quantitative growth driven by massive domestic demand."