Exploring China? Don’t miss out on the Chinese Semiconductor sector

In this recap of presentations recorded at ETFestival 2021 on the 15 May 2021, Tan De Jun, Senior Analyst, Stocks and ETFs Research at iFAST Financial shares about the outlook for the Chinese semiconductor sector.

iFAST Content & Marketing Team
iFAST Content & Marketing Team15 Jun 2021 11191 Views
Exploring China? Don’t miss out on the Chinese Semiconductor sector

Semiconductors are the bedrock of technology. They are the enablers of all modern technology from smartphones to cloud computing and even self-driving cars. Look closely and you will find that nearly every electronic items around us have semiconductors embedded in them.

As the world we live becomes increasingly tech-driven, the role of semiconductors will become more important than ever.

Yet at the same time, China, despite becoming a global economic powerhouse and the second largest economy in the world – which some say is set to topple the United States to become the number one economy in the world, has not had significant presence in the global semiconductor market. In 2019, the country as a whole accounted for just five percent of the global market, far behind the US and South Korea which controlled 47% and 19% of the market respectively.

China has long struggled to produce its own chips as it lacks the technology and has relied heavily on imports to fulfil its semiconductor demand - especially those that require cutting-edge manufacturing processes. SMIC, China's largest and most advanced foundry only began producing chips using a 14 nanometer process late in 2019, a feat that rival TSMC managed to achieve five years ago.

So why are we suggesting that Chinese semiconductors are worth investing in?

Find out more in this presentation, where Tan De Jun, Senior Analyst, Stocks and ETFs Research at iFAST Financial will share several key reasons why China’s semiconductor sector is one for the future.




Invest

To invest in the Chinese semiconductors sector, you can consider the Global X China Semiconductor ETF (HKEX:3191)

To invest in the US semiconductors sector, you can consider the VanEck Vectors Semiconductor ETF (NASDAQ.SMH)

Sector

ETF

RSP

China Semiconductors

Global X China Semiconductor ETF (HKEX:3191)

Apply for RSP

US Semiconductors

VanEck Vectors Semiconductor ETF (NASDAQ.SMH)

Apply for RSP

ETF RSP Promotion

From now till 8 December 2021, investors can enjoy a 0% processing fee when they transact ETFs through a Regular Savings Plan (RSP) from a list of over 60 ETFs.

Read more about the 0% processing fee for RSPs promotion here.

Find out which are the best-in-class ETFs to invest in this year through our ETF Focus List 2021.

All materials and contents found in this site are strictly for general circulation and informational purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found/identified in this site. While iFAST Financial Pte Ltd ("IFPL") has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this report is made on a general basis and neither IFPL nor any of its servants or agents have given any consideration to nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You should consider carefully if the products you are going to purchase are suitable for your investment objective, investment experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment product. Past performance is not indicative of future performance. The value of the investment products and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. In respect of any matters arising from, or in connection with the said research analyses or research reports, recipients of the report are to contact IFPL at 10 Collyer Quay, #26-01 Ocean Financial Centre Building, Singapore 049315, or by telephone at +65 6557 2853. Where the report contains research analyses or research reports from a foreign research house and if the recipient of such research analyses or research reports is not an accredited investor, expert investor, institutional investor or an ex-accredited investor, IFPL accepts legal responsibility for the contents of such analyses or reports to such persons only to the extent as required by law. Please note that only certain security(ies) herein are available to all investors, while the rest are only available for certain persons to invest in, such as Accredited Investors (as defined in the Securities and Futures Act) or one who invests at least S$200,000 (or its equivalent currency) per transaction. To qualify as an Accredited Investor, one needs to submit a declaration form and certain relevant supporting documents, according to iFAST’s prevailing policies and procedures.

Please read our full disclaimers on the website at ( https://fsm.global/sg/policies/328125/investment-account-terms-&-conditions).

iFAST Financial Pte Ltd (IFPL) (registered address: 10 Collyer Quay #26-01 Ocean Financial Centre Singapore 049315, Telephone: 6557 2000) holds the Financial Advisers Licence issued by the Monetary Authority of Singapore ('MAS') to conduct regulated activities of advising on securities, marketing of collective investment schemes and arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance and the Capital Markets Services Licence issued by the MAS to conduct regulated activities of dealing in securities and providing custodial services for securities. While IFPL has made every effort to ensure the independence of the report's contents, IFPL's nature of business is such that IFPL and its connected and associated entities together with their respective directors, officers and staff may be involved in providing dealing or investment-related services in the abovementioned securities, and have taken or may take positions in the securities mentioned in this report, and may also act as the principal for any buy or sell trades.