
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)
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RSP |
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China Semiconductors |
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US Semiconductors |
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