How to Invest in Semiconductors in Mexico

Semiconductors are the physical infrastructure behind artificial intelligence, electric vehicles, 5G networks, and the data center economy. Behind every query to an AI model and every connected car sit thousands of chips designed, manufactured, and assembled by a handful of specialized companies. Demand is not concentrated in a single firm: there is a value chain (design, manufacturing, equipment, materials) in which a small group of players dominates each link. The shape of that value chain, and the high barriers to entry at each link, is what makes the sector interesting from an investment standpoint, not the headlines around any single chip launch.

For many investors in Mexico, the interest lies in understanding how to access the sector from a local portfolio. In the Q2 2026 Outlook, Jan van Eck identified semiconductors as one of the firm's highest-conviction areas. TSMC reported record revenue of US$35.9 billion in the first quarter of 2026, annual growth of 40.6%, and raised its full-year growth guidance to more than 30%. To understand who the protagonists of this wave are, it is also worth reviewing our analysis of the top AI companies to watch in 2026, where we detail how the artificial intelligence economy rests on a physical infrastructure dominated by a few players in the semiconductor sector.

Why semiconductors matter in an investment portfolio

Sector growth responds to two main dynamics. On one hand, sustained growth driven by artificial intelligence, data centers, the electrification of transport, and the energy transition. On the other, the sector's historical cyclicality: phases of inventory accumulation, capex cuts, margin adjustments, and export controls. The sector's growth potential is meaningful, but so is its historical volatility.

Market power is concentrated in a few companies with structural competitive advantages. NVIDIA leads in GPUs for training AI models. Taiwan Semiconductor Manufacturing (TSMC) concentrates manufacturing at advanced nodes. ASML is effectively the sole supplier of EUV lithography equipment. Broadcom is a reference in custom silicon for data centers. These companies are mentioned for illustrative purposes to map the sector and do not constitute a buy or sell recommendation.

The third component is geopolitical. Tensions between the United States and China, export controls on advanced technology, and the concentration of sophisticated manufacturing in Taiwan are material factors. In semiconductors, the macro and geopolitical environment has a direct impact.

The three routes to invest in semiconductors from Mexico

There are three real routes to access the sector from Mexico, each with its own advantages and risks.

Route 1. Individual stocks (NVIDIA, TSMC, AMD, Broadcom, ASML)

These companies trade on the Sistema Internacional de Cotizaciones (SIC) of the Mexican Stock Exchange and can be traded through Mexican brokerages such as GBM, Actinver, Kuspit, or Banorte. The transaction is settled in pesos. The advantage is direct exposure to a single company; the main risk is concentration. A single stock is a single thesis. If the cycle turns or a specific earnings disappointment emerges, the investor absorbs the full drawdown. It is the highest-concentration route available in the sector.

Route 2. Thematic sector ETFs (the diversified option)

An ETF brings together, in a single instrument, the shares of multiple companies in the sector. It trades intraday like a stock, physically replicates the index it tracks, and publishes the totality of its holdings daily. For a Mexican investor, this addresses concentration and transparency at the same time.

Three ETFs stand out. The VanEck Semiconductor ETF (SMH) offers exposure to 25 of the largest U.S.-listed companies in the sector. The iShares Semiconductor ETF (SOXX) tracks a similar universe with a different index construction. The Direxion Daily Semiconductor Bull 3x (SOXL) offers leveraged exposure at three times the daily sector return and, given its elevated risk profile, is not appropriate as core portfolio exposure.

Referenced ETFs may differ materially in objectives, strategies, holdings, risks, fees, liquidity, tax treatment, and other characteristics. VanEck also offers the VanEck Fabless Semiconductor ETF (SMHX), a focused exposure to fabless companies (chip designers that outsource manufacturing), for investors looking to capture the design segment of the value chain.

Route 3. BMV cross-listed ETFs (direct local-market access)

VanEck maintains more than 40 ETFs cross-listed directly on the Mexican Stock Exchange. Unlike SIC access, these products trade on the BMV, are operated during local hours through a Mexican brokerage, and settle in pesos. For global themes such as semiconductors, this reduces the operational friction Mexican investors have historically faced when seeking exposure to international strategies. For the current list of funds available from Mexico, the funds page on the Mexican VanEck site keeps the detail up to date.

Risks Mexican investors should consider

The six main risks of the sector are:

• Sector concentration. A semiconductor ETF is concentrated in a single industry; its behavior tends to be more volatile than that of a broad ETF on the S&P 500 or MSCI ACWI.
• Cyclicality. Phases of inventory accumulation, capex cuts, and margin adjustments are recurrent in the sector.
• MXN/USD currency risk. Most thematic ETFs are denominated in dollars. A strengthening peso reduces peso-measured returns; a weakening peso amplifies them.
• Geopolitical risk. Tensions between the United States and China, export controls on advanced technology, and the concentration of manufacturing in Taiwan.
• Regulatory risk. The tax treatment of ETFs accessible via SIC versus those cross-listed on the BMV can differ. It is advisable to confirm with a tax advisor.
• Liquidity. Thematic ETFs may face wider spreads during periods of market stress, particularly during hours of low local trading activity.

For this reason, this type of exposure is generally used as a complement within a diversified portfolio, not as the core. Sizing the position matters as much as choosing the vehicle.

VanEck's approach to thematic investing

VanEck was founded in 1955 as one of the first U.S. asset managers with an international focus. Over seven decades, the firm has identified transformative themes before they became consensus: international investing in the 1950s, gold starting in 1968, the first gold miners ETF (GDX) in 2006, digital assets in recent years and, today, the themes of the artificial intelligence economy. This pattern matters because thematic conviction tested across multiple market cycles tends to outlast the noise of a single quarter or a single headline. VanEck remains a privately held firm, owned by the van Eck family since its founding, a structure that supports a long-term decision horizon. In Mexico, investors access more than 40 VanEck ETFs cross-listed on the Mexican Stock Exchange, spanning core and thematic exposures. To learn more about VanEck's 70-year track record, the corporate blog gathers the history from its origins.

Frequently asked questions

What is a semiconductor ETF?

A semiconductor ETF is an exchange-traded fund that brings together shares of companies in the sector (chip designers, manufacturers or foundries, equipment and materials suppliers) in a single instrument that trades intraday like a stock. It allows diversified exposure to the sector without selecting individual companies.

How can I invest in semiconductors from Mexico?

There are three main routes: individual stocks accessible via SIC through a local brokerage; thematic sector ETFs listed in the United States and accessible via SIC; and ETFs cross-listed directly on the Mexican Stock Exchange with local liquidity. Each route involves different trade-offs in concentration, costs, and execution.

What companies make up the VanEck SMH ETF?

SMH tracks the MVIS US Listed Semiconductor 25 Index, which includes 25 of the largest U.S.-listed companies in the sector. Historically, top holdings have included NVIDIA, Taiwan Semiconductor Manufacturing (TSMC), ASML, Broadcom, Qualcomm, and Lam Research. Holdings are published daily and weights vary.

What are the risks of investing in the semiconductor sector?

The main risks are sector concentration, the industry's inherent cyclicality, MXN/USD currency risk, geopolitical exposure (U.S. and China tensions and the concentration of manufacturing in Taiwan), and higher volatility than a broad index. Sizing the exposure is as important as choosing the vehicle.

How to go deeper

Semiconductors occupy a singular place in the thematic portfolios of the coming years given their structural role in the digital economy. The combination of SIC access and BMV cross-listed ETFs offers genuine flexibility of implementation. To learn more about the VanEck Semiconductor ETF (SMH) or to review the full lineup of funds available from Mexico, the investments section of the Mexican VanEck site is the starting point. Access the opportunities of the global market with the discipline of an asset manager with a 70-year track record.