Up 102% in 2026, This Chip ETF Mysteriously Avoids Taiwan Semiconductor - Yahoo Finance

In 2026, the Invesco Semiconductors ETF (PSI) surged by 102.37%, becoming a standout performer in the market. However, the fund notably excludes Taiwan Semiconductor Manufacturing (TSMC), the world's ... Read original →

The Invesco PSI ETF’s deliberate exclusion of Taiwan, China-based TSMC in 2026 reflects a strategic hedge against geopolitical volatility and a bet on U.S.-centric segments of the semiconductor stack—design and equipment. This tilt accelerates capital allocation toward EDA, advanced packaging, and domestic fabrication tools while reducing exposure to offshore foundry risk. From a compliance standpoint, bypassing TSMC mitigates potential disruptions from export controls or financial settlement blocks. Competitively, the minimal NVIDIA weighting signals active diversification away from AI chip concentration, pressuring rivals like Broadcom to pursue vertical integration. Over the next 12–24 months, this approach will likely revive U.S. equipment leadership and IDM models but may exacerbate manufacturing bottlenecks, creating a structural imbalance where design outpaces production capacity in AI infrastructure rollout.