Asian Semiconductor ETF Surges Nearly 6% in Session as AI Infrastructure Investment Expansion Continues, Potentially Extending Tech Cycle

Stock News07-09

An exchange-traded fund tracking Asian semiconductor stocks experienced a significant intraday surge, climbing nearly 6%. At the time of writing, the ETF was up 3.93%, trading at HK$23.3, with a turnover of HK$9.8543 million.

The move follows a recent report from the Korea Development Institute, which indicated that South Korea's exports are maintaining a "strong" expansion, driven by demand related to artificial intelligence. In June, monthly exports surpassed US$100 billion for the first time, reaching a record high of US$102.25 billion, a year-on-year increase of 70.9%. That month, semiconductor exports, fueled by a surge in demand for memory chips, nearly tripled compared to the same period last year, reaching US$44.82 billion. This marks the first time monthly semiconductor exports have exceeded US$40 billion.

Analysis from Goldman Sachs suggests that investment in AI infrastructure remains in an expansion phase. Emerging applications such as physical AI and edge AI are expected to follow the current wave of AI server and data center construction, potentially extending the duration of this technology cycle. This cycle is anticipated to become one of the largest and longest-lasting tech upcycles in history.

According to publicly available information, the E Fund Asia Semiconductor ETF (03486) closely tracks the Solactive Asia Semiconductor Select Index. The ETF includes major Asian semiconductor industry leaders such as SK Hynix, Hua Hong Semiconductor, TSMC, SMIC, and Tokyo Electron. It provides comprehensive exposure to high-growth segments including AI computing power, semiconductor manufacturing equipment, and memory chips.

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