Taiwan Index Plus Corp. (TIP), an index provider wholly owned by the Taiwan Stock Exchange, has launched the TIP Customized Taiwan Wafer Manufacture Index (TIP Taiwan WM Index) to give investors the opportunity to capitalize on the country’s strengths in semiconductor development.
The index provider said on Monday, when the TIP Taiwan WM index was unveiled, that the index is comprised of 30 semiconductor firms listed on the main board or in the over-the-counter market, including Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker.
In addition to TSMC, TIP said, other major firms in the newly launched index include contract chipmakers United Microelectronics Corp. (UMC) and Vanguard International Semiconductor Corp. (VIS), dynamic random access memory (DRAM) makers Winbond Electronics Corp. and Nanya Technology Corp., and smartphone IC designer MediaTek Inc.
Other major index constituents include communications network IC designer Realtek Semiconductor Corp., IC packaging and testing service provider ASE Technology Holding Co., silicon wafer supplier GlobalWafers Co., and its parent company Sino-American Silicon Products Inc.
TIP said the 30 constituents in the TIP Taiwan WM index were selected based on how liquid they were in the local equity market as well as how they performed in the industry.
Selection was also decided by the firms’ market capitalization, financial strength, and efforts to improve corporate governance, the index provider said.
TIP said it would conduct regular index reviews in May and November every year to adjust the composition of the index.
The index provider cited a recent research report from the Market Intelligence and Consulting Institute (MIC) under the government-sponsored Institute for Information Industry as saying the production value of the local wafer manufacturing industry was expected to grow by 25 percent from a year earlier to NT$2.2 trillion (US$73.82 billion) in 2022.
The output of the wafer manufacturing industry is expected to account for one-half of the estimated NT$4.4 trillion in the entire local semiconductor sector, according to the report.
Source: Focus Taiwan News Channel