Samsung Active Asset Management Lists KoAct Optical Communication & Satellite Network Active ETF

Samsung Active Asset Management will list the 'KoAct Optical Communication & Satellite Network Active' ETF, which invests in domestic companies in the network infrastructure sector, on July 14.

The artificial intelligence (AI) industry has so far grown around computation (GPU), memory semiconductors, and power infrastructure. However, recently, with the expansion of AI data centers and the rising demand for AI agents and 'inference' tasks, the network has emerged as a new bottleneck. This is because enhancing the overall performance of networks connecting both the inside and outside of data centers has become essential for the stable implementation of high-performance AI services.

Within this trend, Samsung Active Asset Management has identified 'optical communication' and 'low Earth orbit (LEO) satellites' as the two axes with the most reliable growth momentum. The application of optical communication is rapidly expanding from long-distance fiber optic cables to short-distance communication inside AI data centers. While copper-based communication has been used in traditional data centers for cost efficiency, AI data centers are now facing limitations in power efficiency and transmission speed due to the surge in data. CPO (Co-Packaged Optics) technology has emerged as the key solution to this challenge. By integrating AI accelerator chips and optical communication modules onto a single board, this technology drastically reduces communication latency and power consumption, making it an essential component for next-generation AI data center construction.

The other growth axis, low Earth orbit satellites, is expected to not only provide ultra-high-speed communication to regions where laying optical cables is difficult, but also serve as the main artery for future industries such as autonomous driving, humanoid robotics, defense, and space data centers. The advancement of reusable launch vehicle technology has lowered costs, and, as demonstrated during this year's global geopolitical conflicts, the utility of LEO satellite communications has been confirmed, leading to increased global investment.

In particular, the movement for global supply chain restructuring in the United States presents an opportunity for domestic companies. Since 2019, the U.S. has been lowering its reliance on Chinese equipment in the telecommunications infrastructure sector by restricting transactions with Chinese telecom equipment manufacturers such as Huawei. This trend is also continuing in strategic industries such as satellites and drones. Korean companies are rapidly emerging as alternative suppliers filling the gap left by Chinese infrastructure, and, in fact, since the second half of last year, there have been successive disclosures of supply contracts for high-quality domestic satellite and optical communication equipment to the U.S.

Kim Hyoshik, Head of Portfolio Management Team 2 at Samsung Active Asset Management, stated, "It is encouraging that domestic companies are winning more orders in the U.S., but it will take time for these to translate into actual revenue. In the early stages of industry growth, individual stocks can be highly volatile, so diversified investment through a portfolio may be a more effective approach than focusing on specific stocks."

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