The Chinese government has been affected by the U.S. advanced semiconductor technology embargo on China and the ramp-up of the semiconductor technology base.
The new U.S. export controls have been in place, restricting the sale of semiconductors made with U.S. technology. Shares in top Chinese chipmakers shed $7.7 billion in market value on October 10.
The controls also restricted the export of manufacturing tools and barred U.S. citizens from working with Chinese chipmakers.
S. s landmark $52 billion federal program to boost domestic chipmaking capabilities bars companies buying federal funding from materially expanding the production of chips more advanced than 28 nm in China for ten years. Companies vying for funding cannot increase their production of advanced chips in China.
Leading U.S. tech ETFs SPDR Select Sector Fund Technology XLK, VanEck Semiconductor ETF SMH, and iShares Semiconductor ETF SOXX have gained between year-to-date.
SMH and SOXX with exposure to Nvidia Corp NVDA, Taiwan Semiconductor Manufacturing Company Ltd TSM, Advanced Micro Devices, Inc AMD, ASML Holding N.V. ASML, Texas Instruments Inc TXN, Intel Corp INTC and other chipmakers led the gains.
XLK is a major exposure to Microsoft Corp MSFT, Apple Inc AAPL, followed by chipmakers Nvidia and more.
The Chinese techETF's gains trailed the U.S. peers. iShares China Large-Cap ETF FXI, KraneShares Trust KraneShares CSI China Internet ETF KWEB, and iShares MSCI China ETF MCHI gained between 0.4% and 2.7% YTD.
The Chinese ETFs have a significant exposure to Tencent Holding Ltd TCEHY, Alibaba Group Holding Limited BABA, Baidu, IncBIDU, JD.Com, Inc JD, and more.
Big players like Baidu, JD, and Alibaba were impacted by China's crackdown on tech.