First ETF Focused on PCB Supply Chain Leaders in Taiwan, Japan, and Korea to Launch

As demand for AI servers, high-speed computing, and data centers escalates, investment focus is shifting from chips and servers to critical supply chains like Printed Circuit Boards (PCBs), substrates, and advanced materials. In response, CTBC Investments is launching the "CTBC Taiwan, Japan, and Korea PCB ETF (009828)," the first ETF in Taiwan to concentrate on the PCB supply chain.

The ETF, set to begin its offering on August 17, will select 30 key companies from Taiwan, Japan, and South Korea, providing investors with a consolidated entry into industry leaders. "PCBs are known as the 'mother of electronic components,'" said Yeh Song-hsuan, the ETF's manager. He explained that with the expansion of AI models and increasing data transmission, servers demand higher bandwidth, power efficiency, heat dissipation, and reliability. This elevates high-end PCBs from mere circuit carriers to crucial components influencing system performance and stability.

Goldman Sachs forecasts the AI PCB market to grow at a compound annual growth rate of 140% between 2025 and 2027, with the AI copper clad laminate market potentially seeing a 179% increase in the same period. Yeh noted that Taiwan, Japan, and South Korea collectively account for about 90% of the global substrate market. Taiwan excels in semiconductors and advanced packaging, Japan holds technological advantages in materials like glass fiber cloth and copper foil, and South Korea is significant in memory, semiconductor applications, and related supply chains.

The "NYSE TIP Taiwan, Japan, and Korea PCB Index," which 009828 tracks, undergoes semi-annual adjustments in February and August. It screens for highly liquid stocks across the three markets, categorizing them into core PCB manufacturing, upstream and midstream materials and services, and market-leading enterprises. The top 30 stocks by market capitalization, offering the most growth potential, are selected. The index's country allocation is primarily Taiwan (56.5%), followed by Japan (36.3%) and South Korea (7.2%). The industry distribution is dominated by information technology (72.3%), with materials and industrials making up the rest. As of July 31, top holdings included companies like Nan Ya Plastics, Unimicron, Ibiden, Nitto Denko, JX Nippon Mining & Metals, Mitsui Mining & Smelting, Zhen Ding Technology, Taiflex Scientific, Chung Hwa Picture Tubes, and Doosan Group.