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TAIFEX to launch futures tracking Taiwan's semiconductor, logistics giants

Taiwan Semiconductor 30 Futures and Shipping and Transportation Sector Futures to start trading June 27

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Taiwan is home to the world's marine shipping giants by vessel capacity, including Evergreen, Yang Ming and Wan Hai.

Taiwan is home to the world's marine shipping giants by vessel capacity, including Evergreen, Yang Ming and Wan Hai. (CNA photo)

TAIPEI (Taiwan News) — The Taiwan Futures Exchange (TAIFEX) unveiled two new futures tracking the main board's most active semiconductor and transportation and shipping stocks, which will be eligible for trading on June 27.

The launch of Taiwan Semiconductor 30 Futures (SOF) and Shipping and Transportation Sector Futures (SHF) will enable investors who put their money in the top semiconductor, transportation, and marine shipping companies by market cap, to better hedge risks given the wild ride they have faced since 2021.

Taiwan is a leader in the global chip supply chain. The nation enjoys the highest market share in pure-play foundries and in the packaging and testing industry. It is also in second place for the integrated circuit design market worldwide.

According to TAIFEX, SOF tracks the performance of the top 30 semiconductor companies ranked by market capitalization listed on the Taiwan Stock Exchange and Taipei Exchange. These companies include Taiwan Semiconductor Manufacturing Company, MediaTek Inc., ASE Technology Holding Co, and United Microelectronics Corporation, among others. Combined they comprised 92.72% of market cap and 99.51% of transactions per category in late 2021.

SOF can also be traded overnight by investors for timely risk management during U.S. market hours, when the index's major components are listed as American Depositary Receipts.

As a key player in the world's container shipping industry, Taiwan has benefited from a surge in demand and in rates as it is home to some of the world's top marine shipping giants by vessel capacity, including Evergreen, Yang Ming, and Wan Hai.

SHF's underlying index, the TAIEX Shipping and Transportation Sub-Index, comprises companies such as EVA Air, China Airlines, and Taiwan High Speed Rail, and benchmarks the overall performance of the country's shipping and transportation stocks. The launch of SHF will allow investors to gain exposure to this pivotal sector while navigating any disruption.