Global Asset Managers Slash Semiconductor Exposure as TSMC, Samsung, SK Hynix Hit 30.89% in Emerging Market Index

According to Financial Times and Bloomberg, major global asset managers including Fidelity International, BlackRock, Invesco, and JP Morgan Asset Management are reducing their exposure to Asian semiconductor stocks today (July 13), citing excessive concentration risk.

The combined weight of TSMC, Samsung Electronics, and SK Hynix in the MSCI Emerging Market Index surged to 30.89% as of June 30, more than doubling from 13.92% a year ago. Invesco's Asia equity chief William Lam disclosed that the firm cut Samsung Electronics' weighting by over 60% in its Asia-focused equity fund this year, reallocating those funds to non-tech Korean companies. BlackRock and Fidelity are similarly diversifying into overlooked emerging market stocks and non-tech sectors including energy, materials, and power infrastructure. JP Morgan is pivoting toward India and China, citing Chinese chipmakers SMIC and Huawei as emerging investment alternatives.