Taiwan's first EV-focused exchange-traded fund (ETF) is set to list on the Taiwan Stock Exchange on July 1st, Cathay Global Autonomous and Electric Vehicles ETF (00893.TT). The off-shore ETF is designed to track the performance of a set of companies engaged in the development of autonomous and electric vehicles. Most of fund assets are invested in constitutents of the ICE FactSet Global Autonomous and Electric Vehicles Index (ICFSAEV) directly.
Cathay Financial Holdings noted ahead of its launch that the ICE FactSet Global Autonomous and Electric Vehicles Index (Global AEV index) is the purest AEV Index globally, which covers the up-, mid-, downstream supply chain of AEVs.
Taiwan and the EV Industry The listing of an EV-focused ETF is coming at an important time. Taiwan's long-time strength in the electronics industry is increasingly being applied to the EV industry, where vehicles are being computers on wheels.
Meanwhile, Taiwan's large business conglomerates as well as its small- and medium-sized businesses which have acted as original equipment manufacturers (OEMs) and original design manufacturers (ODMs) in the electronics, computing and auto parts industries are now focusing on their development in the EV and auto electronics industries. Most notably is the Foxconn Technology Group, which recently announced its MIH EV Open Platform will begin operations in July this year. By June, it had already signed up over 1,500 suppliers join the platform, with the group to leverage its long-time role as a assembler and manufacturer of scores of branded electronics devices.
At the same time, Taiwan is home to a group of around 1,000 firms of so-called "hidden champions" whose role in the traditional auto industry as OEM/ODM manufacturers, after-market (AM) parts suppliers, or other kinds of equipment suppliers. These firms are actively developing their abilities to supply EV makers in the U.S., Japan, Europe and China. Add to them firms in Taiwan's backbone electronics and semiconductor industries, and Taiwan is expected to move from being the "Republic of Computers" to one highlighted by its role in the EV industry.
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