Before getting too excited about Apple’s potential impact on Taiwan Semi, investors should note that Apple has scores of suppliers and due to previous supply chain issues pertaining to marquee products, it would not be surprising to see the company look to contract its chip needs out to several providers after severing ties with Samsung. That could include Intel (NasdaqGM: INTC), the world’s largest semiconductor maker, and the largest holding in SMH with a weight of 19.6%.
Investors may also want to consider the iShares PHLX Semiconductor ETF (NasdaqGS: SOXX). SOXX is the top-performing major semiconductor ETF over the past 12 months with a gain of 29%. Intel and Taiwan Semi combine for 16% of the fund’s weight.
iShares PHLX Semiconductor ETF
ETF Trends editorial team contributed to this report. Tom Lydon’s clients own shares of Apple.