Semiconductor Materials, Parts, and Equipment Rally Finally Coming? | Park Hyunji, Yeo Doeun, Heo Jaemu

Summary

Manager Park Hyunji discusses whether the long-awaited rally in Korean semiconductor materials, parts, and equipment (소부장) is finally starting. She sees an AI-driven capex cycle with a clear trickle-down effect that will benefit 소부장 companies, especially as KOSDAQ reclassification favors semiconductor-heavy names. She recommends several ETFs to capture the theme across different risk profiles, including broad domestic 소부장, equipment-focused, hybrid large-cap/소부장, US Philadelphia semiconductor, and Japanese 소부장. Additionally, she notes Chinese tech ETFs are rallying on IPO catalysts and government support, and suggests patient accumulation in Hyundai Motor Group’s robotics value chain ETF.

• Semiconductor 소부장 is expected to benefit from the capex cycle, with front-end equipment reacting first, followed by parts and materials.
• Upcoming KOSDAQ premium/standard reclassification may concentrate capital into semiconductor-heavy firms, boosting 소부장.
• Recommended ETFs include SOL AI Semiconductor Materials & Equipment (broad), ACE AI Semiconductor Chip 3 (top 3 plus 소부장), KODEX AI Core Equipment (aggressive equipment), TIGER Philadelphia Semiconductor (US equipment), and PLUS Japan Semiconductor Materials & Equipment.
• Chinese tech ETFs (STAR Market, ChiNext) have risen on IPO hopes (CXMT, Unitree) and continued government AI/semiconductor support.
• Hyundai Motor Group's robotics value chain ETF is a long-term accumulation story, diversified with Nvidia and Google holdings.
• Caution on leveraged ETFs due to volatility decay, and on chasing semiconductor large-caps at current elevated levels without pullbacks.
• A balanced portfolio approach combining domestic 소부장 ETFs with overseas exposure is preferred to manage single-country risk.