Global X Asia Semiconductor ETF

Risk Disclosures

Investors should not base investment decisions on this website alone. Please refer to the Prospectus for details including the product features and the risk factors. Investment involves risks. There is no guarantee of the repayment of the principal. Investors should note:

Global X Asia Semiconductor ETF’s (the “Fund’s”) investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
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. These companies rely on significant spending on research and development that may cause the value of securities of all companies within this sector of the market to deteriorate.
Some Asian securities exchanges (including Mainland China) may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. Some Asian markets may have higher entry barrier for investments as identification number or certificate may have to be obtained for securities trading. All these may have a negative impact on the Fund.
The Fund invests in emerging markets which may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk, currency devaluation, inflation and the likelihood of a high degree of volatility.
The trading price of the Fund’s unit (the “Unit”) on the Stock Exchange of Hong Kong is driven by market factors such as demand and supply of the Unit. Therefore, the Units may trade at a substantial premium or discount to the Fund’s net asset value.
The Fund’s synthetic replication strategy will involve investing up to 50% of its net asset value in financial derivative instruments (“FDIs”), mainly funded total return swap transaction(s) through one or more counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund.
As part of the securities lending transactions, there is a risk of shortfall of collateral value due to inaccurate pricing of the securities lent or change of value of securities lent. This may cause significant losses to the Fund. The borrower may fail to return the securities in a timely manner or at all. The Fund may suffer from a loss or delay when recovering the securities lent out. This may restrict the Fund’s ability in meeting delivery or payment obligations from realisation requests.

Asia’s Fab Four – Asian Semiconductor Industry Poised For Further Growth

Global X Asia Semiconductor ETF

In a single trade, gain access to dozens of Asian companies positioned to benefit from the rising demand for semiconductors.

Stock Code

3119 (HKD)^#
Underlying Index

Asia Semiconductor Index^{^}
AUM^* (as of )

HK$
Ongoing Charges Over A Year^%

0.68%
Inception Date

22 Jul 2021
Product Details^#

Factsheet

# Investment involves risk. Before making any investment decision to invest in the Fund, investors should read the Fund’s prospectus for details and the risk factors. Visit Global X ETFs Hong Kong website for more details relating to this fund (including but not limited to the fund’s iNAV, market price, performance, daily holdings and tracking difference/error)

Why Invest?

Video: Global X Asia Semiconductor ETF

The rapid rise of innovative industries such as AI, IoT, cloud, 5G and EVs is expected to drive up long-term demand for semiconductors

Asia dominates the semiconductor manufacturing supply chain and is uniquely positioned to benefit from increasing demand

Driven by national ambitions to achieve self-sufficiency, Chinese firms are rapidly making progress in semiconductor manufacturing and design

Global Demand For Semiconductors Is Rising

Embedded inside every electronic device, home appliance and automobile are tiny pieces of silicon that perform the computations needed for their operation: semiconductors. Today, around a trillion chips are manufactured every year – equal to 128 for every person on the planet¹ – and annual worldwide sales are expected to reach US$527 billion in 2021, up almost 20% from the year before². The profitability of the industry has also risen sharply with global semiconductor companies’ annual profits during 2013-2017 surging by 575% compared to the preceding 5-year period³. A key driver of this growth has been the continuing rise of technology and digitization, a long-term trend that was accelerated by the COVID-19 pandemic. Leading companies such as Alibaba and Tencent constantly roll out product or technology upgrades in order to remain competitive, and semiconductors are key enablers of such advances⁴. Furthermore, the rapid rise of innovative new industries such as artificial intelligence, internet of things, cloud computing, 5G as well as electric and autonomous vehicles is driving up long-term semiconductor demand. In the case of AI applications, semiconductors are projected to capture up to 50% of the value of the overall technology stack, which is larger than the share of total value from PCs and mobile phones⁵. In terms of automobiles, the use of semiconductors in cars has been steadily increasing and an electric vehicle can now contain more than 3,000 chips⁶.

Asia Dominates Chip Manufacturing

Despite their ubiquity, semiconductors are highly complex products to design and manufacture, which has resulted in a highly specialized supply chain where regions perform different roles based on their comparative advantages⁷. Benefitting from an abundant talent pool, robust infrastructure and cost-competitiveness, Asia leads the world in the production of chips with 75% of global semiconductor manufacturing capacity⁸. In the case of advanced chips (nodes of 10 nanometers or below), only two companies in the world possess the technological capability to produce them – TSMC of Taiwan and Samsung Electronics of Korea. When combined with Japan’s expertise in manufacturing equipment, materials and image sensors, and China’s global leadership in assembly, packaging and testing, Asia holds a strong position within the global semiconductor supply chain. The region’s “Big-4” of China, Japan, Korea and Taiwan already generate 35% of global chip revenues⁹ and are uniquely positioned to benefit from growing global demand. Through continued investment and capital expenditure, Asia’s global champions are striving to consolidate their lead - TSMC plans to spend US$100 billion over the next three years to build more cutting-edge fabrication plants¹⁰ whilst Samsung unveiled plans to spend US$150 billion until 2030¹¹.

China Marches Towards Semiconductor Self-Sufficiency

As well as being the world’s largest producer of semiconductors, Asia is also the largest consumer and accounts for 60% of global sales¹². In the case of China, which imports more chips than crude oil, its reliance on foreign semiconductors is a cause for concern especially as trade tensions with the United States intensify over strategically important technologies. Through policy initiatives such as Made in China 2025 and the Guidelines to Promote National Integrated Circuit Industry Development, China’s government is investing upwards of US$100 billion to realize its ambition of becoming self-sufficient. Whilst the country still lags behind leading nations in terms of technology, it is making rapid progress in terms of design and manufacturing especially in the lower end of the market, and an increasing number of Chinese companies are emerging as potential leaders.

^ Underlying Index: FactSet Asia Semiconductor Index.

*Source: Mirae Asset Global Investments.
% As the Fund is newly set up, this figure is an estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average net asset value over the same period. It may be different upon actual operation of the Fund and may vary from year to year. As the Fund adopts a single management fee structure, the estimated ongoing charges of the Fund will be equal to the amount of the single management fee, which is capped at 0.68% of the average net asset value of the Fund. Any ongoing expenses exceeding 0.68% of the average net asset value of the Fund will be borne by the Manager and will not be charged to the Fund. Please refer to “Ongoing fees payable by the Sub-Fund” in the KFS and the Prospectus for details.
1. The Economist, “The struggle over chips enters a new phase,” 23 January 2021.
2. Press Release by the Semiconductor Industry Association, 09 June 2021.
3. McKinsey & Company, “McKinsey on Semiconductors,” October 2019.
4.Ibid
5.Ibid
6. The Economist, “The struggle over chips enters a new phase,” 23 January 2021.
7.Boston Consulting Group, “Strengthening the Global Semiconductor Supply Chain in an Uncertain Era,” 01 April 2021
8. Financial Times, “In Charts: Asia’s Manufacturing Dominance,” 24 March 2021
9.Deloitte, Rise of “Big-4” – The Semiconductor Industry in Asia Pacific,” 2020
10.The Economist, “How TSMC Has Mastered the Geopolitics of Chipmaking,” 29 April 2021
11.Chen Xi, Asia Global Online - University of Hong Kong, “Chip Wars and Decoupling: China and the US’s Semiconductor Plays,” 03 June 2021
12.Deloitte, Rise of “Big-4” – The Semiconductor Industry in Asia Pacific,” 2020

This website is intended for Hong Kong investors only. Your use of this website means you agree to our Terms of use. This website is strictly for informational purposes only and does not constitute a representation that any investment strategy is suitable or appropriate for an investor’s individual circumstances. In 2018, Global X was acquired by Mirae Asset Global Investments and Mirae Asset Global Investments Co., Ltd. is the parent company of Mirae Asset Global Investments (Hong Kong) Limited.

The information contained in this website is for information purposes only and does not, constitute any recommendations, offer or solicitation to buy, sell or subscribe to any securities or financial instruments in any jurisdiction. Investment involves risk. It cannot be guaranteed that the performance of the Product will generate a return and there may be circumstances where no return is generated or the amount invested is lost. Past performance is not indicative of future performance.

Before making any investment decision to invest in the Product, investors should read the Product’s prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Product and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investments.

Certain information contained in this website is compiled from third party sources. Whilst Mirae Asset Global Investments (Hong Kong) Limited (“Mirae Asset HK”), the Manager of the Product, has, to the best of its endeavor, ensured that such, information is accurate, complete and up-to-date, and has taken care in accurately reproducing the information. Mirae Asset HK accepts no liability for, any loss or damage of any kind resulting out of the unauthorized use of this website.

The Products are not sponsored, endorsed, issued, sold or promoted by their index providers. For details of an index provider including any disclaimer, please refer to the relevant Product’s offering documents.

The contents of this material is advertising in nature and is prepared by Mirae Asset Global Investments (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. Issuer: Mirae Asset Global Investments (Hong Kong) Limited.