EXCLUSIVE: KraneShares CIO Talks Intel And AMD, As China Seeks Semiconductor Self-Sufficiency
Portfolio Pulse from Surbhi Jain
China mandates leading telecom operators to eliminate foreign semiconductors by 2027, impacting Intel and AMD, which derive significant revenues from China. Despite potential revenue loss, KraneShares CIO Brendan Ahern views the impact on Intel and AMD as limited, citing the directive's focus on government procurement. Ahern suggests the KraneShares CICC China 5G and Semiconductor Index ETF (KFVG) and stocks like Hua Hong Semiconductor (HHUSF), Intchains Group (ICG), and ACM Research (ACMR) as potential investment opportunities amid China's push for semiconductor self-sufficiency.
April 18, 2024 | 3:12 pm
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POSITIVE IMPACT
ACM Research (ACMR) is seen as a promising stock due to upgraded revenue projections and favorable analyst assessments amid China's semiconductor push.
ACMR's positive revenue outlook and analyst support underscore its potential as China advances its semiconductor industry.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Hua Hong Semiconductor (HHUSF) is highlighted as a potential stock pick, poised for expansion and benefiting from China's domestic chip production push.
With its strategic positioning and expansion plans, HHUSF is well-placed to benefit from China's emphasis on domestic semiconductor production.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Intchains Group (ICG) is recommended for its versatile operations and robust finances, making it an attractive investment amid China's semiconductor ambitions.
ICG's diversified operations and strong financial health position it as a beneficiary of China's push for semiconductor self-sufficiency.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
KraneShares CICC China 5G and Semiconductor Index ETF (KFVG) is recommended by KraneShares CIO as an investment to capitalize on China's semiconductor self-sufficiency push.
KFVG is positioned to benefit from China's focus on developing its semiconductor industry, making it an attractive option for investors looking to capitalize on this trend.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
AMD could see a revenue impact from China's 2027 deadline for telecoms to stop using foreign semiconductors, with China accounting for 15% of its revenues.
While AMD has less exposure to China compared to Intel, the directive still poses a risk to its revenues. The focus on government procurement, however, limits the overall effect.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEGATIVE IMPACT
Intel faces potential revenue loss from China's directive to remove foreign semiconductors, impacting 27% of its total revenues.
Intel's significant revenue exposure to China makes it vulnerable to the directive, but the limited scope to government procurement mitigates the overall impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80