Taiwan Semiconductor Shares Double as AI Demand Boosts 14.3% ETF Weight
TSM•Taiwan Semiconductor Manufacturing’s US-listed shares have more than doubled over the past year as AI chip demand soared, pushing Taiwan’s stock market to the world’s fifth largest. The company accounts for 14.28% of the iShares MSCI Emerging Markets ETF, which has gained 25% year-to-date.
1. AI-Driven Emerging Market Surge
The iShares MSCI Emerging Markets ETF has climbed 25% so far this year, driven by strong returns in Asian markets focused on semiconductor and AI hardware companies. Equities in South Korea and Taiwan have surged 87.2% and 52.4% respectively, reflecting investor appetite for AI-related technology exposure.
2. Taiwan Semiconductor’s Soaring Share Price
Taiwan Semiconductor Manufacturing’s US-listed shares have more than doubled over the past year as global demand for advanced AI chips spiked. The company’s market leadership in 3nm and 5nm process technologies underpins the stock’s rally and contributes to Taiwan’s ascendance as the world’s fifth-largest equity market.
3. ETF Concentration and Volatility Implications
Taiwan Semiconductor comprises 14.28% of the ETF’s portfolio, while South Korean chip giants Samsung Electronics and SK Hynix hold a combined 13.7%, resulting in a 28% semiconductor weighting. This concentration heightens the fund’s sensitivity to chip industry cycles and could amplify volatility during sector-specific shifts.
