'SOL AI Semiconductor Materials, Components, and Equipment' ETF Achieves 23.14% One-Month Return

Korea’s Largest Semiconductor Materials, Components, and Equipment ETF
KRW 230 Billion in Net Individual Purchases This Year

Shinhan Asset Management announced on September 9 that the 'SOL AI Semiconductor Materials, Components, and Equipment ETF' has quickly rebounded after a correction in July, drawing increased attention from investors.

As of September 7, the SOL AI Semiconductor Materials, Components, and Equipment ETF recorded a one-month return of 23.14%. This performance is attributed to heightened expectations for improved earnings from memory semiconductor companies, fueled by expanded investments in AI infrastructure and a recovery in the semiconductor industry. Investor interest has also spread to HBM (High Bandwidth Memory), advanced packaging, semiconductor substrates, and miniaturization processes.

There continues to be an inflow of funds. The ETF’s net assets stand at KRW 1.0486 trillion, making it the largest among all semiconductor materials, components, and equipment ETFs listed in Korea. Since the start of the year, the cumulative net purchase amount by individual investors has reached KRW 230 billion.

Kim Junghyun, Head of the ETF Business Group at Shinhan Asset Management, stated, "In the early stage of the semiconductor supercycle, large-cap memory stocks such as Samsung Electronics and SK hynix lead the upward trend. However, once facility investments begin in earnest, orders for equipment and demand for materials and components rise, expanding the range of beneficiaries to materials, components, and equipment companies." He further explained, "The recent rebound of the SOL AI Semiconductor Materials, Components, and Equipment ETF reflects this rotational shift."

Recently in the semiconductor market, the uptrend that began with AI accelerators and HBM is spreading across the entire supply chain. As AI server performance increases, not only is there a growing importance of high-performance memory, but also of substrates that connect chips and stably transmit power and signals, as well as advanced packaging and testing equipment. As the complexity of miniaturization and stacking technologies rises, demand is also expected to grow for deposition, etching, and cleaning equipment, as well as processing materials.

Additionally, as global memory companies such as Samsung Electronics and SK hynix continue to invest in facilities to expand HBM production capacity and transition to advanced processes, the potential benefits for domestic semiconductor materials, components, and equipment companies are increasing.

The SOL AI Semiconductor Materials, Components, and Equipment ETF focuses on Korean companies in the semiconductor materials, components, and equipment sector, excluding comprehensive semiconductor manufacturers like Samsung Electronics and SK hynix. Instead of concentrating on a single part or process, it covers the entire AI semiconductor supply chain. Key holdings in the ETF include Hanmi Semiconductor (17.08%), Jusung Engineering (10.46%), Isu Petasys (10.29%), Wonik IPS (6.35%), Daeduck Electronics (5.81%), HPSP (5.79%), LIG Nex1 (5.74%), Simmtech (4.94%), PSK (4.22%), and SKC (3.62%).

Kim added, "Domestic semiconductor materials, components, and equipment companies possess global-level technological competitiveness and are currently valued at relatively lower multiples compared to major global semiconductor companies. The SOL AI Semiconductor Materials, Components, and Equipment ETF is a product that allows for broad investment in the diverse bottlenecks and increased facility investments occurring during the AI semiconductor advancement process, while reducing the volatility risk associated with individual stock investments."

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