ETF Constituent Adjustment: 00891 Adds Win Semiconductors, Taiwan Semiconductor, WPG to Fully Cover AI Supply Chain

As the AI wave continues to drive global semiconductor demand, CTBC Key Semiconductor (00891-TW), Taiwan's largest semiconductor ETF, has completed its latest constituent adjustment, effective July 27. This rebalancing focuses on long-term AI development trends, adding Win Semiconductors (5483-TW), Taiwan Semiconductor (3532-TW), WPG (3702-TW), and ChipMOS (6147-TW) to further strengthen positions in silicon wafer materials, semiconductor distribution, and packaging/testing, making the investment portfolio more comprehensively cover the AI semiconductor supply chain.

CTBC Asset Management notes that this adjustment reflects how AI industry development has expanded beyond chip design and advanced processes to include material supply, equipment investment, and advanced packaging. By including beneficiaries of these trends, 00891 aims to enhance both the breadth and depth of participation in long-term AI growth.

Among the new constituents, Win Semiconductors and Taiwan Semiconductor have drawn significant market attention. Rapid growth in demand for AI servers, high-performance computing (HPC), and advanced packaging is driving foundries to aggressively expand advanced process capacity. All semiconductor production begins with silicon wafers.

Win Semiconductors, through its subsidiary GlobalWafers, serves global markets and is a key global supplier of semiconductor silicon wafers. Taiwan Semiconductor specializes in high-end silicon wafer manufacturing and has long provided critical materials to foundry customers. As AI chips continue to drive demand for advanced processes, the silicon wafer industry is gradually emerging from its cyclical downturn.

Industry estimates suggest global silicon wafer shipment area will return to growth in 2025, supported by rising demand for AI-related EPI wafers and polished wafers for HBM, with industry conditions expected to further improve from 2027 to 2028. Including these two silicon wafer manufacturers extends 00891's investment scope further upstream in the semiconductor supply chain.

CTBC Key Semiconductor fund manager Chloe Chang stated that the AI wave is rapidly increasing demand for advanced processes and high-performance computing chips, prompting continuous capacity expansion by foundries. As silicon wafers are the most fundamental core material in semiconductor manufacturing, this segment stands to benefit significantly from industry upgrades.

Both Win Semiconductors and Taiwan Semiconductor are key Taiwanese silicon wafer suppliers. Their inclusion extends 00891's investment scope from IC design, wafer fabrication, and packaging/testing further upstream to the very origin of the semiconductor supply chain, enabling more complete capture of value chain growth opportunities driven by AI.

Beyond upstream materials, this rebalancing also adds WPG, one of the world’s top three semiconductor distributors. Manager Chloe Chang noted that the booming development of AI servers, automotive electronics, and edge AI devices has significantly increased customer demand for semiconductor solution integration and supply chain management. As AI applications expand from the cloud to PCs, smartphones, and various smart devices, WPG is well-positioned to benefit from overall chip demand growth.

Additionally, with AI computing power demand surging, the importance of advanced packaging and testing is rising. The addition of ChipMOS strengthens 00891's positioning in back-end processes. Overall, the new constituents span critical segments across upstream materials, midstream distribution, and downstream packaging/testing, making 00891’s coverage of the semiconductor value chain more complete and better reflecting the long-term development trends and structural shifts in the AI-driven semiconductor industry.

Constituents removed in this adjustment include ATE (3264-TW), VTRON (6187-TW), HONG SU (3131-TW), and PTI (6510-TW), primarily reflecting changes in market valuation and index compilation rule adjustments.