Summary

• China is building a domestic semiconductor ecosystem across the entire value chain.
• Tighter export controls have accelerated demand for domestic chip alternatives.
• Sovereign capital is helping fund China's push for semiconductor self-sufficiency.
• Traditional semiconductor funds provide little to no exposure to this theme.
• SMHC offers targeted exposure to companies driving China's semiconductor buildout.

China is investing heavily to build its own semiconductor industry, creating opportunities for investors beyond traditional semiconductor portfolios.

Most semiconductor allocations today are concentrated in US and Taiwanese companies, capturing the design and fabrication layers of