SMI Overview

Chinese Semiconductor Growth: David Sacks, the White House's "Crypto Czar," highlighted a resurgence in Chinese semiconductor manufacturing, with companies like Huawei and SMIC planning to significantly increase AI processor production.

New Fabrication Plants: Three new fabrication plants for AI processors are set to launch, with one starting by the end of this year and two more in 2025, aiming to meet standards from China's AI startup DeepSeek.

Impact of U.S. Export Controls: While Trump-era restrictions on EUV lithography tools have kept Chinese chip technology lagging, Sacks criticized some Biden administration policies as counterproductive to U.S. competitiveness in AI.

Investment Trends: Chinese AI chipmakers are attracting significant investment, with Cambricon raising $600 million and others seeking IPOs after collectively raising $3 billion, leading to a surge in Chinese semiconductor stocks.

U.S.-China Trade Deal: President Donald Trump indicated that the U.S. is nearing a trade agreement with China.

Tariff Threats: He also warned of potential higher tariffs on the European Union.

VanEck ETF Liquidation: VanEck is closing its Green Infrastructure ETF (RNEW) and HIP Sustainable Muni ETF (SMI) due to low performance and demand, with trading ending on June 18 and cash payouts for shareholders around June 25.

Impact on Investors: Shareholders can trade their shares until the deadline or will receive a cash payout based on net asset value; this reflects a trend of asset managers consolidating underperforming funds in the ETF market.