China's Semiconductor Race: A Missing Allocation
July 14, 2026
11:00 AM US ET
The performance of the VanEck Semiconductor ETF (SMH) is not indicative of and does not guarantee the future performance of the VanEck China Semiconductor ETF (SMHC). These are different funds with different holdings and risks. Past performance is no guarantee of future results. SMHC is non-diversified and concentrates in a single country and industry; any reference to it as a source of "diversification" refers only to its potential role as complementary exposure within a broader portfolio and does not change the fund's concentrated, non-diversified nature.
Export controls intended to slow China’s chip industry have instead accelerated it. Each restriction on a foreign supplier has created a direct procurement opening for a domestic alternative, and state funding, localization mandates, and captive demand from government and enterprise buyers have reinforced that dynamic at every layer of the supply chain.
Yet most U.S. investors with semiconductor or China exposure own none of these companies. Semiconductor ETFs are built around U.S. and global names. China equity funds are dominated by consumer internet and financials. Neither captures the domestic chip industry in any meaningful way.
This webinar explores the localization race unfolding inside China’s chip supply chain and the opportunity that conventional allocations are leaving on the table.
- Why U.S. export controls accelerated China’s semiconductor build-out rather than slowing it
- How policy is routing demand to domestic suppliers across design, fabrication, and equipment
- Why the companies at the center of this build-out are largely absent from conventional semiconductor and China allocations
Access the Webinar Replay & Presentation
Related Funds
SMHC | VanEck China Semiconductor ETF
Important Disclosures
This content is intended for educational purposes only. Please note that the availability of the products mentioned may vary by country, and it is recommended to check with your local stock exchange. Please note that VanEck may hold positions in the companies discussed herein
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the speaker(s), but not necessarily those of VanEck or its other employees.
An investment in the VanEck Semiconductor ETF (SMH) and VanEck Fabless Semiconductor ETF (SMHX) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, special risk considerations of investing in Taiwanese issuers, equity securities, small-, medium and large-capitalization companies, foreign securities, emerging market issuers, foreign currency, depositary receipts, issuer-specific changes, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Funds. Small, medium and large-capitalization companies may be subject to elevated risks. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks.
An investment in the VanEck China Semiconductor ETF (SMHC) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, information technology sector, equity securities, depositary receipts, foreign securities, foreign currency, special risk considerations of investing in China issuers, special risk considerations of investing in Chinese-issued A-Shares, Stock Connect, emerging market issuers, PRC tax, medium- and large capitalization companies, cash transactions, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, index-related concentration, and issuer-specific changes risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium- and large-capitalization companies may be subject to elevated risks. Investments in Chinese issuers may entail additional risks that include, among others, lack of liquidity and price volatility, currency devaluations and exchange rate fluctuations, intervention by the Chinese government, nationalization or expropriation, limitations on the use of brokers, and trade limitations
Please see the prospectus of the Fund for more complete information regarding the Fund’s specific risks.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.
SMHC | VanEck China Semiconductor ETF
Important Disclosures
This content is intended for educational purposes only. Please note that the availability of the products mentioned may vary by country, and it is recommended to check with your local stock exchange. Please note that VanEck may hold positions in the companies discussed herein
This is not an offer to buy or sell, or a recommendation to buy or sell any of the securities, financial instruments or digital assets mentioned herein. The information presented does not involve the rendering of personalized investment, financial, legal, tax advice, or any call to action. Certain statements contained herein may constitute projections, forecasts and other forward-looking statements, which do not reflect actual results, are for illustrative purposes only, are valid as of the date of this communication, and are subject to change without notice. Actual future performance of any assets or industries mentioned are unknown. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. VanEck does not guarantee the accuracy of third party data. The information herein represents the opinion of the speaker(s), but not necessarily those of VanEck or its other employees.
An investment in the VanEck Semiconductor ETF (SMH) and VanEck Fabless Semiconductor ETF (SMHX) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, special risk considerations of investing in Taiwanese issuers, equity securities, small-, medium and large-capitalization companies, foreign securities, emerging market issuers, foreign currency, depositary receipts, issuer-specific changes, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount and liquidity of fund shares, non-diversified, and index-related concentration risks, all of which may adversely affect the Funds. Small, medium and large-capitalization companies may be subject to elevated risks. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks.
An investment in the VanEck China Semiconductor ETF (SMHC) may be subject to risks which include, among others, risks related to investing in the semiconductor industry, information technology sector, equity securities, depositary receipts, foreign securities, foreign currency, special risk considerations of investing in China issuers, special risk considerations of investing in Chinese-issued A-Shares, Stock Connect, emerging market issuers, PRC tax, medium- and large capitalization companies, cash transactions, market, operational, index tracking, authorized participant concentration, new fund, no guarantee of active trading market, trading issues, passive management, fund shares trading, premium/discount, liquidity of fund shares, non-diversified, index-related concentration, and issuer-specific changes risks, all of which may adversely affect the Fund. Emerging market issuers and foreign securities may be subject to securities markets, political and economic, investment and repatriation restrictions, different rules and regulations, less publicly available financial information, foreign currency and exchange rates, operational and settlement, and corporate and securities laws risks. Medium- and large-capitalization companies may be subject to elevated risks. Investments in Chinese issuers may entail additional risks that include, among others, lack of liquidity and price volatility, currency devaluations and exchange rate fluctuations, intervention by the Chinese government, nationalization or expropriation, limitations on the use of brokers, and trade limitations
Please see the prospectus of the Fund for more complete information regarding the Fund’s specific risks.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider the investment objective, risks, charges and expenses of a Fund carefully before investing. To obtain a prospectus and summary prospectus, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus carefully before investing.
© Van Eck Securities Corporation, Distributor, a wholly owned subsidiary of Van Eck Associates Corporation.