KGI Launches Two AI-focused Funds to Tap into Taiwan’s Booming Tech Sector
Taiwan’s artificial intelligence (AI) revolution is gaining momentum, and KGI Securities is positioning itself to capitalize on this growth. The company has launched two innovative funds—TaiwanAI13 and TaiwanHD13—designed to tap into the island’s thriving AI supply chain and long-term economic potential.These funds,structured as Depositary Receipts (DRs),began trading on the Thai stock market,offering investors a gateway to Taiwan’s tech-driven economy.
TaiwanAI13 focuses on the global AI industry, targeting key segments of the AI supply chain, including data management, semiconductor chip production (GPU and TPU), algorithms, and applications. Meanwhile, TaiwanHD13 is tailored for long-term investment in Taiwan’s broader economy, which has shown remarkable resilience and growth.
According to Mr. Janewit Chingulkitniwat, managing Director of KGI Securities’ Derivatives Business Department, Taiwan’s economic growth is fueled by its robust AI supply chain, which supports expanding U.S. businesses. “The investment trend in AI is still on the rise after Covid and has continued to grow,” he noted. In 2024, Taiwan’s economy grew by 4.5%, with a gross domestic product (GDP) of $76.8 billion, securing its position as the 14th richest country globally.However, investing in Taiwan’s individual stocks can be risky due to regulatory constraints on foreign shareholdings. KGI’s funds offer a safer alternative by selecting high-performing stocks with strong growth potential. TaiwanAI13, an ETF fund, has delivered notable returns by focusing on AI-related industries. TaiwanHD13, on the other hand, has seen remarkable growth over the past two years, with a 60.9% increase in 2023 and a 22.6% rise in 2024. By December 20, 2024, the fund was valued at 6.33 million Taiwan dollars (approximately 7 trillion baht), benefiting over 13.8 million investors—a 60% increase in participation.
Dr. Chih-Hong Lin, Executive Committee Member of KGI Securities (Thailand), highlighted the enduring strength of Taiwan’s OEM supply chain, which aligns with U.S. AI development. “After the inauguration of Donald Trump, there will be increased trade protectionist measures. But the relationship between Taiwan and the United states is still good for Taiwan’s industry,” he explained.
For investors looking to capitalize on Taiwan’s AI-driven growth, KGI’s funds offer a strategic entry point. Below is a summary of the key details:
| Fund | Focus | 2023 Growth | 2024 Growth | Value (Dec 2024) |
|—————–|——————————-|—————–|—————–|———————-|
| TaiwanAI13 | Global AI Supply Chain | N/A | N/A | N/A |
| TaiwanHD13 | Taiwan’s Long-Term economy | 60.9% | 22.6% | 6.33M TWD (~7T Baht) |
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Taiwan’s AI revolution is not just a local phenomenon—it’s a global opportunity. With KGI’s new funds, investors can now be part of this transformative journey.
Exploring Taiwan’s AI Revolution: A Conversation with KGI Securities Specialist
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Taiwan’s artificial intelligence (AI) sector is transforming not only its local economy but also offering global investment opportunities. KGI Securities has recently launched two AI-focused funds—TaiwanAI13 and TaiwanHD13—to help investors tap into this booming tech sector. We spoke with Dr. Wei-Ting Huang, a senior financial analyst at KGI Securities, to gain deeper insights into these funds and the potential they hold for investors.
Understanding Taiwan’s AI boom
Senior Editor: Dr. Huang, Taiwan’s AI sector has been making headlines globally.What makes Taiwan such a pivotal player in the AI supply chain?
Dr. Huang: Taiwan’s strength lies in its robust semiconductor industry, which forms the backbone of AI progress. The island is home to leading chip manufacturers like TSMC, which produce advanced GPUs and TPUs essential for AI applications.additionally, Taiwan’s expertise in data management and algorithm development has positioned it as a key contributor to the global AI ecosystem. This combination of hardware and software capabilities makes Taiwan a critical player in the AI supply chain.
Introducing KGI’s AI-Focused Funds
Senior Editor: KGI Securities has launched two funds—TaiwanAI13 and TaiwanHD13. Can you explain the focus and structure of these funds?
Dr. Huang: Absolutely. TaiwanAI13 is an ETF fund designed to target the global AI supply chain. It invests in key segments such as semiconductor production, data management, algorithms, and AI applications. On the other hand,TaiwanHD13 is tailored for long-term investment in Taiwan’s broader economy,which has shown remarkable resilience and growth. Both funds are structured as Depositary Receipts (DRs) and are traded on the Thai stock market, offering investors a convenient way to participate in Taiwan’s tech-driven economy.
The Investment Case for Taiwan’s AI Sector
Senior Editor: Why should investors consider Taiwan’s AI sector as a strategic opportunity?
Dr. Huang: Taiwan’s AI sector is not just a local phenomenon—it’s a global opportunity. the island’s economic growth, driven by its AI supply chain, has been impressive. In 2024, Taiwan’s GDP grew by 4.5%, reaching $76.8 billion, and it ranks as the 14th richest country globally. Though, investing in individual taiwanese stocks can be risky due to regulatory constraints on foreign shareholdings.KGI’s funds offer a safer choice by selecting high-performing stocks with strong growth potential.Such as, TaiwanHD13 has delivered a 60.9% return in 2023 and a 22.6% increase in 2024, making it an attractive option for investors.
Senior Editor: What are the key risks associated with investing in Taiwan’s AI sector, and how do KGI’s funds mitigate them?
Dr. Huang: The primary risk is regulatory uncertainty, particularly around foreign ownership of Taiwanese stocks. Additionally, the AI sector is highly competitive and rapidly evolving, which can lead to volatility. KGI’s funds mitigate these risks by diversifying investments across multiple high-performing companies and focusing on long-term growth trends. For instance, TaiwanAI13 targets the AI supply chain, which is expected to grow significantly as AI adoption expands globally.
The future of Taiwan’s AI Economy
Senior Editor: Looking ahead, what trends do you foresee in Taiwan’s AI sector, and how will KGI’s funds adapt to these changes?
Dr. Huang: Taiwan’s AI sector is poised for continued growth, fueled by advancements in semiconductor technology and increasing demand for AI applications. The relationship between Taiwan and the U.S. remains strong, which will further support the island’s AI development. KGI’s funds are designed to adapt to these trends by continuously monitoring market dynamics and adjusting investment strategies accordingly.For investors, this means a reliable way to stay connected to Taiwan’s AI-driven economy.
