How to Seize Core Assets in the AI Wave? —— Investment Opportunities in Asian Semiconductors

Since the 1980s, technological innovation cycles represented by the Internet and mobile Internet have systematically improved the productivity of human society; currently, artificial intelligence is gradually penetrating various industries, and is expected to follow the Internet and mobile Internet in ushering in the third wave of global efficiency improvement. Looking at the previous two industrial transformations, semiconductors have always been the underlying cornerstone of technological innovation: terminal penetration, network transmission, cloud computing power, and application innovation all rely on chip performance iteration, power consumption optimization, cost reduction, and integration upgrades. In the AI industrial revolution, semiconductors are even more the core support of the computing power foundation, becoming an indispensable key link in the foundational layer of the AI industry chain.

Figure: The semiconductor industry plays a foundational role in the AI industry chain

Data from Moody's Investors Service shows that Asia produces over 75% of the world’s chips, forming a 'Japan materials & equipment + Korea memory + Taiwan foundry + China mainland packaging, testing & maturity' golden global semiconductor supply chain, with each segment holding irreplaceable strategic value. The four regions complement each other and interlock, building a complete industrial ecosystem that is difficult for other regions to replicate. Combined with global tech giants ramping up AI investments and significantly expanding AI hardware capital expenditures, investment in the AI chip supply chain continues to heat up, and the Asian semiconductor industry is facing relatively high-potential growth opportunities.

For investors, how can they efficiently and conveniently position themselves in this relatively high-potential core sector? The E Fund Asia Semiconductor ETF (code: 3486.HK) tracks the Solactive Asia Semiconductor Select Index, focusing on key areas of the global semiconductor supply chain and capturing the robust growth opportunities in Asia's semiconductor industry.

1. Overview of the Solactive Asia Semiconductor Select Index

The Solactive Asia Semiconductor Select Index serves as a one-stop tool for gaining exposure to leading companies across the entire Asian semiconductor supply chain. The index uses the RBICS industry classification as a screening criterion, selecting companies involved in semiconductor manufacturing and semiconductor equipment and services. It covers companies listed on exchanges in Hong Kong, Japan, and South Korea, as well as U.S.-listed semiconductor leaders headquartered in Taiwan.

The index adopts a fixed number of components, totaling 30 stocks, ranked by free-float market capitalization from high to low. The Hong Kong market and non-Hong Kong markets each include 15 stocks, ensuring balanced regional distribution and representation across the supply chain.

1. Characteristics of Index Components – High concentration of semiconductor leaders with strong industry representation

As of March 6, 2026 (the latest rebalancing observation date), the top ten weighted stocks collectively account for 71.21%, including global semiconductor industry leaders such as Hua Hong Semiconductor, SK Hynix, Taiwan Semiconductor, and SMIC. These companies cover core segments like AI computing power chips manufacturing, semiconductor equipment, and advanced packaging and testing, demonstrating significant influence and profitability resilience within the industry.

Figure: Components of the Solactive Asia Semiconductor Select Index

Data source: Solactive, as of March 6, 2026 (latest index observation date)

$HUA HONG SEMI (01347.HK)$$Taiwan Semiconductor (TSM.US)$$SMIC (00981.HK)$$ASMPT (00522.HK)$$INNOSCIENCE (02577.HK)$$SHANGHAI FUDAN (01385.HK)$$GIGADEVICE (03986.HK)$$INNOSCIENCE (02577.HK)$$Tokyo Electron (8035.JP)$$Advantest (6857.JP)$$SENSETIME-W (00020.HK)$$TENCENT (00700.HK)$$ZTE (00763.HK)$$XIAOMI-W (01810.HK)$$LENOVO GROUP (00992.HK)$$BLACK SESAME (02533.HK)$$MONTAGE TECH (06809.HK)$$ASE Technology (ASX.US)$

2. Index Performance

Since the base date (March 20, 2020), the annualized return of the Asia Semiconductor Select Index has been 29.68%, demonstrating strong profitability over a long-term period. It is a typical high-volatility and high-elasticity index. More notably, the Asia Semiconductor Select Index has shown significant excess returns compared to similar semiconductor investments, significantly outperforming major comparable indices in the Asian region.

Chart: Historical performance of the Asia Semiconductor Select Index

Data source: Bloomberg, Wind, data as of February 28, 2026

The above is only an objective display of the historical performance of the benchmark index. The past performance of the index does not indicate its future performance and should not be considered as any form of investment advice. Investors are advised to be mindful of the risks associated with index fluctuations. The actual returns of the fund may differ from index performance due to management fees and tracking errors, among other factors. Please exercise caution.

This content is issued by E Fund Management (Hong Kong) Co., Ltd. This content does not constitute an invitation or recommendation to invest in fund units. Investment involves risks, and fund prices can rise or fall. Before investing, investors should carefully read the fund prospectus (including the "Risk Factors" section) for information on investment risks related to the fund. This content has not been reviewed by the SFC. For detailed important notices and disclaimers regarding the above fund, please visit E Fund Management (Hong Kong) Co., Ltd.

E Fund (Hong Kong) Solactive Asia Semiconductor Select Index ETF（3486）：https://www.efunds.com.hk/tc/products/53/important/

$EFund A SEMICON ETF (03486.HK)$ $HSI Futures (MAY6) (HSImain.HK)$$Nasdaq Composite Index (.IXIC.US)$$Hang Seng TECH Index (800700.HK)$

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