Spotlight Stock: SK Hynix Plans $10 Trillion Investment to Build Factory in Japan, Two Japanese Semiconductor ETFs Surge

South Korea's memory giant SK Hynix is evaluating the construction of a memory manufacturing plant in Miyagi Prefecture, Japan, with an investment scale projected to reach up to 10 trillion won. Based on past precedents, foreign companies establishing factories in Japan typically need to incorporate part of the local supply chain. If this investment plan is finalized, it would significantly benefit Japanese semiconductor equipment and materials suppliers, injecting strong momentum into the industry. Encouraged by this news and positive industry prospects, Japanese stock ETFs listed in Taiwan rose broadly during trading today (24th).

Compared to broader-market-focused ETFs such as those tracking the Nikkei 225, semiconductor-focused ETFs stood out particularly. Among them, CTBC Japan Semiconductor (00954-TW) and Taishin Japan Semiconductor (00951-TW) led the gains, ranking first and second in intraday performance among all Japanese ETFs.

As of August 21, CTBC Japan Semiconductor ETF holds leading Japanese companies in semiconductor equipment, testing, and materials sectors. Individual holdings such as Advantest, Tokyo Electron, and Disco each account for over 10% of the portfolio.

Today’s Asian equity markets traded in a volatile consolidation pattern, primarily due to market caution ahead of the upcoming U.S. PCE data and NVIDIA’s earnings report. While the Nikkei Index consolidated near the 66,000 level at a high range, semiconductor-related stocks performed relatively well. Analysts noted that although Japanese semiconductor stocks underwent a correction last week, this did not reflect any fundamental deterioration in the industry. As valuations have returned to reasonable levels, buying interest has naturally returned, indicating growing investor appetite for dips.

CTBC Japan Semiconductor ETF manager Hsu Chia-yu stated that accelerated capacity expansion and technology upgrades by foundries and memory manufacturers are being driven by continued increases in AI-related capital expenditures by cloud service providers (CSPs). He added, “The AI industry is still in a ‘gold rush’ phase, with various players actively investing to capture market share. In comparison, we are more optimistic about upstream and midstream players in the semiconductor supply chain—those who act as ‘shovel sellers,’ namely equipment and materials suppliers.”

Hsu further pointed out that foundries and memory makers continuously purchase equipment for capacity expansion, and equipment manufacturers can recognize revenue upon successful delivery and acceptance. Under the environment where CSPs continue to invest heavily in AI infrastructure, Japan’s semiconductor sector has demonstrated strong growth momentum through monthly sales data. Beyond high near-term earnings visibility, even as AI applications mature in the future, underlying infrastructure demand will persist and not easily fade away.

*Disclaimer: The information regarding individual stocks, funds, and futures products mentioned in this article is for reference only and does not constitute investment advice. Investors should make independent judgments, carefully assess risks, and bear their own profits and losses.