Up 102% in 2026, This Chip ETF Mysteriously Avoids Taiwan Semiconductor - 24/7 Wall St.

The Invesco Semiconductors ETF (PSI) surged 102.37% in 2026, nearly doubling in just six months, despite its name suggesting a broad exposure to the semiconductor industry. Notably, it holds no shares... Read original →

The surge in the Invesco Semiconductors ETF (PSI) reflects a strategic bet on U.S.-based AI chip design and equipment firms, not broad semiconductor strength. By excluding Taiwan, China’s TSMC—despite its irreplaceable role in 3nm and EUV manufacturing—the fund sidesteps geopolitical risk but severs ties with technological reality. This amplifies near-term gains for AMD and NVIDIA but leaves portfolios exposed to foundry bottlenecks. If U.S. equipment makers like Lam Research or Applied Materials face export curbs limiting access to Asian advanced fabs, their growth ceilings will tighten. Over the next 12–24 months, as AI accelerators scale into volume production, foundry pricing power will rebound, exposing the fragility of design-heavy ETFs. Policy-driven decoupling from Taiwan, China is forcing capital into suboptimal trade-offs between efficiency and perceived security.