On March 26, the E Fund (Hong Kong) Solactive Asia Semiconductor Select Index ETF (03486) officially commenced trading on the Hong Kong Exchange. This ETF tracks the Solactive Asia Semiconductor Select Index, providing investors with an efficient tool to gain exposure to the entire Asian semiconductor industry chain and capture investment opportunities in core assets amid the artificial intelligence wave.
Asia serves as a central hub of the global semiconductor supply chain. According to September 2025 data from Moody's Investors Service, Asia produces over 75% of the world's chips. The Solactive Asia Semiconductor Select Index selects 30 constituent stocks from companies listed on the Hong Kong, Japanese, and South Korean exchanges, as well as US-listed semiconductor leaders headquartered in Taiwan, China. It aggregates industry benchmark companies such as SK Hynix, Hua Hong Semiconductor, TSMC, and SMIC. The index employs a fixed number of constituents, including 15 from the Hong Kong market and 15 from non-Hong Kong markets, ensuring balanced regional distribution and representation of the industry chain.
As of February 28, 2026, the top ten holdings of the index accounted for a combined 76.64% of its weight, covering core segments including AI computing chip manufacturing, semiconductor equipment, and advanced packaging and testing.
The index has demonstrated exceptional historical returns, achieving a cumulative return of 426% since its base date of March 20, 2020. It has also shown strong short-term momentum, with returns of 72% over the past year and 185% over the past two years. These figures significantly outpace major peer indices in the Asian region, positioning the ETF as a preferred tool for capturing opportunities in the Asian semiconductor market. It is important to note that past index performance does not indicate future results and is not investment advice. Investors should be aware of risks associated with index volatility. The fund's actual returns may differ from the index performance due to management fees and tracking error.
The index precisely focuses on the unique global "golden semiconductor industry chain" formed by the combination of "Japanese materials and equipment + Korean memory + Taiwanese foundry + Mainland Chinese packaging, testing, and manufacturing." These four regions possess complementary strengths and interlinked processes, creating a complete industrial ecosystem difficult to replicate elsewhere.
Mainland China is a core base for import substitution. Benchmark companies like Hua Hong Semiconductor, SMIC, and ASMPT cover key areas such as wafer foundry, advanced packaging and testing equipment, and AI computing chip design. The self-sufficiency rate for semiconductors in China increased from 15% in 2019 to 28% in 2024, indicating substantial room for further import substitution.
South Korea is central to the AI memory boom. SK Hynix has established a dual monopoly in technology and market share within the HBM sector, holding a 62% share of HBM shipments and 57% of related revenue in 2025. The company is well-positioned to benefit from the explosion in demand for AI computing storage.
Japan is home to hidden champions in equipment and materials. Tokyo Electron, as a leader in front-end equipment, commands a 92% market share in coating and developing equipment. Its extremely high technological barriers make it an indispensable part of the global semiconductor supply chain.
Taiwan, China, represents the sole global access point for advanced process nodes. TSMC's 3nm capacity is booked until 2027, and its 2nm process entered mass production at the end of 2025, maintaining a lead over competitors of at least three years. AI chips for global tech giants like NVIDIA, AMD, and Google are all manufactured by TSMC.
The semiconductor industry is currently in an upward cycle, with computing power demand continuing to grow rapidly. Between 2022 and 2024, market confidence in AI industry development was primarily driven by investments from cloud computing providers. Since 2025, as AI model performance has improved, downstream application scenarios have continued to emerge. The virtuous cycle created by commercial applications has become a new source of confidence for the AI industry. For instance, the daily token usage of the Doubao large model has increased significantly since 2025, and Google's token processing volume reached 1300 trillion in September, reflecting rapidly rising end-demand for global AI applications.
E Fund Asset Management (Hong Kong) Limited stated that historically, every technological revolution has relied on the foundational support of semiconductors. Looking ahead, the vigorous development of the artificial intelligence industry will continue to drive sustained growth in semiconductor demand. Leveraging the complementary advantages within the Asian semiconductor industry cluster, the region has formed the world's most complete semiconductor ecosystem. It holds irreplaceable strategic positions in core segments such as AI computing chips, advanced process nodes, memory, and equipment and materials.
The E Fund (Hong Kong) Solactive Asia Semiconductor Select Index ETF (03486) closely tracks the Solactive Asia Semiconductor Select Index, accurately aggregating leaders from across the regional industry chain. It covers core segments including wafer foundry, memory, equipment, and packaging and testing, providing investors with a convenient tool for one-stop exposure to the entire Asian semiconductor industry chain and for capturing core assets poised for growth during the high-growth phase of the AI era.