If You Missed The Korean AI ETF Boom There Are The 2 Taiwanese Options With Direct Exposure To The Supply Chain

17 hours ago 4

Jorge Aragon

Fri, June 12, 2026 astatine 10:11 AM CDT 12 min read

Quick Read

EWT and FLTW surged ~90% implicit the past twelvemonth but present commercialized astatine 31.8x earnings, already pricing successful bull-case 35% net maturation with small country for error.
Elon Musk's Terafab tapped Intel implicit TSMC, but if it fails, request would apt reenforce TSMC's irreplaceability and travel backmost to Taiwan's ecosystem.
Jensen Huang called Taiwan 'the epicenter of the AI revolution' arsenic Nvidia targets $150B per twelvemonth successful Taiwanese investments, a 10-fold summation since 2021.
Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and iShares MSCI Taiwan Capped ETF didn't marque the cut. Grab the names FREE today.

Taiwan manufacturing capableness

Taiwan is the world's astir captious semiconductor manufacturing hub. In 2025 its system grew by 8.68% and it exported astir $550B, increasing astatine a staggering complaint of 34% YoY. Electronics traditionally correspond astir 33% of the total. With the summation successful CAPEX by the American and Chinese AI industry, the Taiwanese exports are becoming captious for the full proviso chain.

This hyper specialized semiconductor ecosystem is what makes the land truthful strategically charismatic for the leading-edge AI companies and investors alike. No different state combines Taiwan's semiconductor expertise, instrumentality and endowment connected this scale. The grounds is successful the numbers, with a 90% planetary marketplace stock for leading-edge spot production.

Taiwan´s manufacture is profoundly integrated, and arsenic the large manufacturers grow, truthful bash the mean and tiny ones. TSMC ($TSM) mightiness beryllium the astir well-known name, arsenic it is besides the largest institution successful Taiwan. The institution provides precocious manufacturing services for the fabless spot companies. TSMC is the de facto manufacturing spouse for Nvidia, Apple, Google, and starring spot designers. While the institution operates fabs successful the U.S., Japan, and China, the astir precocious fabs with the largest capableness are located successful Taiwan.

TSMC and the semiconductor ecosystem

Rising request for TSMC's products is forcing its suppliers to standard up successful parallel. This creates a multiplier effect crossed the broader Taiwanese proviso chain. As TSMC scales to conscionable AI demand, hundreds of section suppliers, from wafer polishers to packaging firms similar ASE, silicon providers similar GlobalWafers, and substrate manufacturers similar Unimicron, besides do. Virtually each of the large suppliers beryllium wrong EWT and FLTW, which is precisely what makes these ETFs a leveraged stake connected Taiwan's full AI proviso chain, not conscionable its astir celebrated spot maker.