Important Information
Investors should not base investment decisions on this material alone. Please refer to the Prospectus for details including the product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- The investment objective of Global X China Semiconductor ETF’s (the “Fund”) is to provide investment results that, before fees and expenses, closely correspond to the performance of the FactSet China Semiconductor Index.
- The Fund is exposed to concentration risk by tracking a single region or country.
- The Index constituents may be concentrated in a specific industry or sector, which may potentially more volatile than a fund with a diversified portfolio.
- Semiconductor industry may be affected by particular economic or market events, such as domestic and international competition pressures, rapid obsolescence of products, the economic performance of the customers of semiconductor companies and capital equipment expenditures.
- Investment in Emerging Market, such as A-share market, may involve increased risks and special considerations not typically associated with investments in more developed markets, such as liquidity risk, currency risks, political risk, legal and taxation risks, and the likelihood of a high degree of volatility.
- The Stock Connect is subject to quota limitations. Where a suspension in the trading through the Stock Connect is effected, the Sub-Fund’s ability to invest in A-Shares or access Mainland China markets through the programme will be adversely affected.
- Listed companies on the ChiNext market and/or STAR Board are usually subject to higher fluctuation in stock prices and liquidity risks, over-valuation risk, differences in regulation, delisting risk, and concentration risk.
- There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realized via Stock Connect on the Fund’s investments in Mainland China. Any increased tax liabilities on the Fund may adversely affect the Fund’s value.
- The trading price of the Fund’s unit on the SEHK is driven by secondary market trading factors, which may lead to a substantial premium or discount to the Fund’s net asset value.
- The Fund’s synthetic replication strategy may invest up to 50% of its net asset value in financial derivative instruments (“FDIs”), which may expose the Fund to counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. The Fund may suffer losses from its usage of FDIs.
- The Manager may at its discretion pay dividends out of the capital of the Fund. Distributions paid out of capital, represent a return of an investor’s original investment or its gains and may potentially reduce the Fund’s Net Asset Value per Share as well as the capital available for future investment.
- The Fund may suffer from a losses or delays when recovering the securities lent out. This may potentially affect its ability to meet payment and redemption obligations. Collateral shortfalls due to inaccurate pricing or change of value of securities lent, may cause significant losses to the Fund.
Quarterly Earning Update – Global X China Semiconductor ETF (3191)
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)