By
Joy Yang
Head of Product Management and Marketing
July 15, 2026

“Made in China” is taking on a new meaning.

In June, the MarketVector™ China Semiconductor 25 Index (MVSMHC) surged 29%, outperforming the MarketVector™ ZhongGuo AllChina Index (MV1CHN) by nearly 33% and beating the MVIS® US Listed Semiconductor 25 Index (MVSMH) by 19%.  

Figure: Index Performance, MVSMV, MV1CHN, & MVSMH. 12-month and 1-month performance.

Source: MarketVector Indexes as of 2026.07.08, cumulative returns through 2026.06.30

China Is Building Its Own Semiconductor Industry

China is putting serious capital behind semiconductor self-sufficiency through its National Integrated Circuit Industry Investment Fund. The third phase launched in 2024 uses 344 billion yuan ($48 billion) to support the buildout of its domestic chip industry[i]. At the same time, China has become the world’s largest spender on semiconductor manufacturing equipment[ii], underscoring its ambition to build one of the world’s most important chip manufacturing ecosystems.

The rally reflects more than market momentum.

As China builds a domestic semiconductor ecosystem across the entire value chain, China will move from a semiconductor consumer to a semiconductor powerhouse builder. MVXMHC offers targeted exposure to the companies powering China’s domestic semiconductor supply chain across chip design, manufacturing, equipment and advanced packaging. The index excludes sanctioned companies by design, reflecting the regulatory risks of investing in this space.

While global semiconductor exposure remained volatile, China semiconductor chips delivered a decisive breakout.

For more information on MarketVector Indexes, visit www.marketvector.com  

Sources:

[i] Reuters “China sets up third fund with $47.5 bn to boost semiconductor sector”, May 27, 2024 https://www.reuters.com/technology/china-sets-up-475-bln-state-fund-boost-semiconductor-industry-2024-05-27/

[ii] South China Morning Post, “China to remain world’s biggest buyer of chipmaking equipment through 2027: SEMI“ https://www.scmp.com/tech/article/3336933/china-remain-worlds-biggest-buyer-chipmaking-equipment-through-2027-semi

 

About the Author(s):

Joy Yang is the Head of Product Management and Marketing at MarketVector Indexes™ (“MarketVector”). She is responsible for managing MarketVector products and services to accelerate innovation in financial index design and adoption. Joy brings more than 25 years of investment experience to MarketVector, having led teams delivering index and quantitative-active investment solutions at Arabesque Asset Management, Dimensional Fund Advisors, Vanguard, Aberdeen Standard Investments, AXA Rosenberg, and Blackrock. She has an MBA from the University of Chicago Booth School of Business and a Bachelor of Science in Electrical Engineering from Cooper Union’s Albert Nerken School of Engineering.

For informational and advertising purposes only. The views and opinions expressed are those of the authors but not necessarily those of MarketVector Indexes GmbH. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts, and other forward-looking statements that do not reflect actual results. It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. MarketVector Indexes GmbH does not sponsor, endorse, sell, promote, or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. The inclusion of a security within an index is not a recommendation by MarketVector Indexes GmbH to buy, sell, or hold such security, nor is it considered to be investment advice.

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