Mirae Asset Global Investments Lists 'TIGER Global MLCC & Substrate ETF' for First Time

Mirae Asset Global Investments is launching an exchange-traded fund (ETF) that invests in global supply chain companies involved in multilayer ceramic capacitors (MLCCs) and semiconductor package substrates, key components in building artificial intelligence (AI) infrastructure.

On October 20, Mirae Asset Global Investments announced that it had newly listed the TIGER Global MLCC & Substrate ETF on the Korea Exchange. The ETF invests in leading MLCC and substrate companies in South Korea, Japan, and Taiwan.

The product is an overseas equity ETF tracking the Solactive-KEDI Global MLCC and Semiconductor Substrate Index. It invests in 13 companies listed in South Korea, Japan, and Taiwan that have market capitalizations of at least $2 billion and operate MLCC, capacitor, or package substrate businesses. Each stock's weighting is calculated based on its free-float market capitalization, with a 20% cap on any single holding.

As big tech companies expand their capital expenditures (CapEx) on AI infrastructure, supply bottlenecks are shifting beyond graphics processing units (GPUs) and high-bandwidth memory (HBM) to MLCCs and substrates. This has drawn attention to the potential beneficiaries among companies in the three key East Asian countries that supply these high-spec components.

The portfolio is anchored by Murata Manufacturing of Japan and South Korea's Samsung Electro-Mechanics, which lead the high-spec MLCC market. It also includes leading flip-chip ball grid array (FC-BGA) substrate suppliers Unimicron, Nan Ya PCB, and Kinsus of Taiwan, as well as Ibiden of Japan. Other holdings across the MLCC and substrate value chain include TDK and Taiyo Yuden of Japan and Yageo of Taiwan. A key feature is its inclusion of major Taiwanese MLCC and substrate companies that have been difficult for domestic investors to access.

Jeong Euihyun, head of the ETF Management Division at Mirae Asset Global Investments, said, "As the AI infrastructure investment cycle continues, physical constraints such as MLCCs and substrates are emerging as new investment opportunities. The TIGER Global MLCC & Substrate ETF will provide an efficient way to benefit from growth across the entire MLCC and substrate value chain by offering comprehensive exposure to supply chains in three countries, including Taiwan."

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