ETF Idea China’s semiconductor industry: Strong performanc | FSMOne SG - Research Highlights

ETF Idea

China’s semiconductor industry: Strong performance year-to-date, but share prices could still rise

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• Chinese semiconductor companies have done well this year, rising by more than 20% year-to-date even as the regulatory crackdown on the tech sector continues.

• The government has identified semiconductors as one of the seven strategic technologies that China will focus on over the next five years. President Xi also appointed Vice Premier Liu He to spearhead the country’s chipmaking ambitions.

• China is starting to make good progress on its goals. Domestic IC production has increased substantially since 2018, a trend that is likely to continue as China pushes to localise chip production.

• Our target price for the Global X China Semiconductor ETF is HKD 93, which represents an upside potential of close to 40% based on the closing price of HKD 67.14 as of 8 Nov 2021.

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: Global X China Semiconductor ETF (HKEX:3191)