Net assets of Shinhan Asset Management's SOL AI Semiconductor Materials, Parts and Equipment exchange-traded fund have topped 1 trillion won, as the benefits of expanding artificial intelligence chip investment spread to suppliers of materials, components and equipment.
Net assets of the fund stood at 1.0486 trillion won as of the 7th of this month, Shinhan Asset Management said on the 9th. That is the largest among chip materials, parts and equipment ETFs listed in South Korea. Cumulative net buying by retail investors since the start of the year reached 230 billion won.
The fund gained 23.14% over the past month, a steep rebound after a correction in July. The recovery reflects growing expectations for earnings improvement at memory chipmakers, driven by expanding AI infrastructure investment and a recovery in the semiconductor cycle, as investor interest widened to high-bandwidth memory, advanced packaging, chip substrates and finer process technology.
The fund excludes integrated chipmakers such as Samsung Electronics and SK hynix, concentrating instead on suppliers of materials, components and equipment. Rather than focusing on a single process, it covers the AI chip supply chain as a whole, according to the company. Major holdings include Hanmi Semiconductor at 17.08%, Jusung Engineering at 10.46%, Isu Petasys at 10.29%, Wonik IPS at 6.35%, Daeduck Electronics at 5.81%, HPSP at 5.79% and LEENO Industrial at 5.74%.
"In the early stages of a semiconductor supercycle, large-cap memory stocks lead the rally, but once capital spending picks up in earnest, equipment orders and demand for materials and components rise, widening the range of beneficiaries to materials, parts and equipment companies," said Kim Jung-hyun, head of the ETF business group at Shinhan Asset Management. "SOL AI Semiconductor Materials, Parts and Equipment lets investors gain broad exposure to the upgrading of AI chips while reducing the volatility burden that comes with investing in individual stocks."
