Quarterly Earning Update - Global X China Semiconductor ETF (3191) - Global X ETFs Hong Kong

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Quarterly Earning Update – Global X China Semiconductor ETF (3191)

By: Edward Chan

Industry Update

2Q25 DRAM Revenue Jumps 17.1% – TrendForce’s latest investigations demonstrate that global DRAM industry revenue reached US$31.63 billion in the second quarter of 2025, up 17.1% QoQ. This growth was fueled by rising contract prices for conventional DRAM, robust shipments growth, and expanding HBM volumes. Inventory digestion at DRAM suppliers accelerated with stronger procurement momentum from PC OEMs, smartphone makers, and CSPs, driving contract prices for most products back into positive territory. SK Hynix had the highest share in DRAM bit shipment in 2Q followed by Samsung. (TrendForce, September 2025)

Cambricon +110% – The company reported strong 2Q25 results where revenues sequentially increased by 59% to Rmb1.8bn, net income of Rmb 683m was well ahead of the street. Cambricon remains as the best-alternative to Huawei and profiting from the local-for-local trend. (Company data, August 2025)

SMIC +18% – The company provided upbeat 3Q guidance. SMIC’s 3Q25 revenue guidance is +5-7% Q/Q, driven by increases in both wafer shipment and blended ASP. Management noted that they will still run at a high UTR thanks to robust orders, especially on the power discrete platform. With UTR expected to remain high, the depreciation burden from capacity expansion should ease. Therefore, SMIC guided 3Q25 GM to be 18-20%. (Company data, August 2025)

Quarterly Earnings Review

Cambricon – The company reported strong 2Q25 results where revenues sequentially increased by 59% to Rmb1.8bn, net income of Rmb 683m was well ahead of the street. Cambricon remains as the best-alternative to Huawei and profiting from the local-for-local trend. (Company data, August 2025)

SMIC – The company provided upbeat 3Q guidance. SMIC’s 3Q25 revenue guidance is +5-7% Q/Q, driven by increases in both wafer shipment and blended ASP. Management noted that they will still run at a high UTR thanks to robust orders, especially on the power discrete platform. With UTR expected to remain high, the depreciation burden from capacity expansion should ease. Therefore, SMIC guided 3Q25 GM to be 18-20%. (Company data, August 2025)

Preview

Increasing AI adoption in the data centre and increasing penetration of AI at the edge and on-device will be the key enabler of next upcycle semiconductor as AI-enabled devices have much higher semi-content. We expect volume growth in end devices to drive broad-based semiconductor cycle recovery in 2025. (Mirae Asset, 2025)

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