PCB Transforms into a 'Money-Printing' Circuit Board! CTBC 009828 Captures Leading Market Opportunities, Foreseeing Further Highs in Taiwan Stocks This Year

Global demand for AI servers, high-performance computing (HPC), and data center infrastructure is exploding, shifting market investment focus from mere chips and server assembly to the most critical foundational components—printed circuit boards (PCBs) and upstream advanced materials. To capture this wave of specification upgrades, CTBC Asset Management has launched Taiwan’s first ETF dedicated to leading PCB firms in Taiwan, Japan, and South Korea: the 'CTBC Taiwan-Japan-Korea PCB ETF (009828-TW)'. The index selects 30 constituent stocks, with Tripod and Unimicron as the top two holdings. The fund manager notes that the recent pullback in Taiwan stocks is a healthy correction to digest pressure and accumulate momentum. With the AI new platform restocking cycle and seasonal effects gaining strength in the second half, the fundamental outlook for Taiwan equities remains positive, and 'there are absolutely further highs to come this year'.

Taiwan's stock market recently suffered a 'bloody July', plunging over 3,000 points. However, Ye Song-Xuan, the designated fund manager of 009828, emphasizes that while the market has undergone a shakeout and volatility, this is merely a short-term adjustment in investor positioning—not a sign of weakening fundamentals. He points out that underpinned by strong AI hardware demand and a robust specification upgrade cycle, once margin debt and speculative positions are cleared, market valuations and momentum will swiftly stage a strong 'V-shaped rebound'.

PCBs, often called the 'mother of electronic components', carry chips and connect electronic signals, and are widely used in smartphones, automotive electronics, home appliances, AI servers, and high-performance computing equipment. Ye notes that PCBs were once seen as a cyclical industry with little technological change over the past 20 years, but in the AI era, they have become key components affecting system performance and stability. Driven by technical manuals from chip giants like NVIDIA, PCB transmission speed requirements have evolved from 'local trains' to 'high-speed rail' and even 'optical rail' (optical transmission), while layer counts have doubled from traditional 13 layers to over 26 layers. Technical specifications now require an upgrade every 1 to 1.5 years.

Ye draws a historical analogy to the 'gold rush', noting that while gold miners may not always profit, the 'shovel sellers'—those providing tools, rails, and equipment—consistently earn stable returns. In the massive wave of AI, high-end PCBs and their upstream materials are exactly such 'shovel sellers'. According to Goldman Sachs, the AI PCB market is projected to grow at a compound annual growth rate (CAGR) of 140% from 2025 to 2027, while the AI copper-clad laminate (CCL) market could reach 179%. As products gradually 'semiconductorize', the PCB supply chain is transforming from a traditional cyclical stock into a high-growth, high-P/E technology growth stock.

Globally, Taiwan, Japan, and South Korea together account for about 90% of high-end substrate and PCB output, possessing irreplaceable technological barriers. Taiwan holds approximately 56.5% of the market, excelling in semiconductor packaging and advanced PCB manufacturing, with companies like Tripod, Unimicron, TTM, and Chin Poon leading globally in copper-clad laminates (CCL) and high-layer boards.

Japan accounts for about 36.3%, controlling the source of advanced materials and equipment. For example, Nittobo dominates key weaving machine capacity for high-end glass cloth, while Ibiden is a leader in high-end IC substrates. South Korea holds about 7.2%, with companies like Doosan Group actively investing in R&D and successfully entering the exclusive high-end PCB supply chains of global AI chip leaders.

The CTBC Taiwan-Japan-Korea PCB ETF (009828-TW) tracks the 'NYSE TIP Taiwan-Japan-Korea PCB Index', is priced at TWD 10 per share, and will begin fundraising from August 17 to August 20. The index selects 30 constituent stocks, covering core PCB manufacturing, IC substrates, and upstream key materials such as copper foil and glass cloth. As of July 31, the top ten holdings include Tripod, Unimicron, Ibiden, Nippon Steel, JX Metals, Mitsui Mining & Smelting, Zhen Ding-KY, TTM, Chin Poon, and Doosan Group.

CTBC Asset Management states that while short-term market fluctuations may be affected by economic cycles or exchange rates, in the medium to long term, the demand for high-speed transmission and advanced materials driven by AI is clear. Following the earlier launch of compute and power-themed ETFs (009819-TW), this new 009828 offering aims to help investors easily gain exposure to the leading component suppliers in Taiwan, Japan, and South Korea with low barriers, fully capturing the AI upgrade dividend.