Kiwoom Asset Management to List Korea's First "MLCC&AI Substrate" ETF on Oct. 13

Benefits Spread Beyond Semiconductors to MLCCs and AI Substrates
50% of Investments Concentrated in Murata Manufacturing and Samsung Electro-Mechanics

Kiwoom Asset Management said on October 12 that it will list the "KIWOOM Global MLCC&AI Substrate TOP4+" exchange-traded fund (ETF) on October 13. The fund invests in companies involved in multilayer ceramic capacitors (MLCCs) and substrates for artificial intelligence (AI) semiconductor packaging.

As global big tech companies increase investment in AI infrastructure, the areas benefiting from AI investment are expanding beyond semiconductors to key components used in servers. In particular, AI servers consume significantly more power and process far greater volumes of data than conventional servers, increasing the importance of MLCCs, which help ensure a stable power supply, and AI substrates, which rapidly transmit signals from high-performance semiconductors.

The KIWOOM Global MLCC&AI Substrate TOP4+ ETF focuses its investments on these key components of the AI infrastructure industry. Its underlying index is the "iSelect Global MLCC&AI Substrate TOP4+ Index," which selects 10 companies involved in MLCCs and AI semiconductor packaging substrates from among companies listed on global stock markets. It allocates 80% of the fund to the four stocks with the highest keyword scores: 25% each to the first- and second-ranked stocks and 15% each to the third- and fourth-ranked stocks. The weights of the remaining six stocks are determined by their free-float market capitalization.

The current top four holdings are Murata Manufacturing and Samsung Electro-Mechanics at 25% each, and Taiyo Yuden and LG Innotek at 15% each. Murata Manufacturing is a leading global electronic components company that produces high-value-added MLCCs for AI servers and automotive electronics. Samsung Electro-Mechanics produces both MLCCs and FC-BGA substrates, operating businesses in two key components needed for AI servers. Taiyo Yuden is a Japanese electronic components company specializing in small, high-capacity MLCCs, while LG Innotek is entering the AI substrate market as it expands its FC-BGA business.

The remaining 20% is invested across companies involved in MLCCs, AI substrates, and related materials, including Doosan, Ibiden, TDK, ISU Petasys, Daeduck Electronics, and SIMMTECH. The fund broadly covers the value chain for key AI server components, including not only MLCCs but also FC-BGA substrates, high-layer-count PCBs, and copper-clad laminates (CCLs).

"While existing AI investment products are focused on semiconductor companies such as GPU and memory makers, this is the first product in Korea's ETF market to present MLCCs and AI substrates as its core investment themes," said Lee Kyung-jun, head of the ETF Management Division at Kiwoom Asset Management. "Designed to broaden AI investment beyond semiconductors to key components and provide one-stop exposure to major companies in Korea and Japan, it could offer a new option for investors seeking broader exposure to the benefits of growth in the AI industry."

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