REX Shares Launches 'CHIP' AI Chipmaking ETF

In line with the shift in artificial intelligence (AI) infrastructure investment from chip design and foundry toward the manufacturing equipment layer, an exchange-traded fund (ETF) specializing in global semiconductor equipment companies has been listed on the U.S. stock market.

On September 29, global ETF manager REX Shares announced the listing of the theme-based ETF "REX AI Chipmaking ETF (CHIP)" on the Nasdaq. This fund invests in key players at the core of AI semiconductor manufacturing, including equipment, packaging, and metrology companies.

CHIP focuses its investments on global companies producing essential equipment for AI semiconductor manufacturing, such as wafer fab (front-end process) equipment, advanced packaging equipment, and metrology equipment. Chip design firms (fabless) and foundries are excluded from the index.

This product tracks the "VettaFi AI Chipmaking Index" with a total annual expense ratio of 0.65%. The index consists of 50% wafer fab equipment, 25% advanced packaging, and 25% metrology, including 55 global stocks. Notably, only about one-third of the constituents are listed in the U.S. market, while it includes numerous Japanese companies such as Tokyo Electron, Advantest, and Disco, as well as Dutch equipment makers like ASML and BESI, enabling broad-based diversification across the global equipment market.

The launch of CHIP comes at a time when expanded investment in AI infrastructure is translating into significant revenue growth for equipment suppliers. The semiconductor equipment market features high entry barriers due to advanced processing requirements and a monopolistic supply structure, along with a 12- to 18-month time lag from capital expenditure (CapEx) announcements to equipment orders. According to REX, while chip designers and foundries benefited most from the recent initial CapEx wave, this phase marks the inflection point for equipment companies to realize growth opportunities. The international industry association SEMI forecasts that global semiconductor equipment revenue will reach a record USD 165.9 billion in 2026, while major hyperscalers' CapEx guidance for this year alone stands at around USD 720 billion to USD 745 billion.

Greg King, founder and CEO of REX Shares, stated, "Whereas investment capital over the past two years mainly flowed to chip designers, we're now entering a stage where capital investment is ramping up for the equipment companies on which those designers critically rely. CHIP offers an efficient solution to access the entire equipment ecosystem underpinning AI infrastructure, regardless of which architecture prevails."

Meanwhile, prior to the new launch, REX Shares held an event in Seoul on September 28, inviting local media to discuss global trends in the ETF and exchange-traded note (ETN) markets as well as avenues for collaboration in the Korean market.

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