The first memory semiconductor exchange-traded fund (ETF) listed in the US market has lowered its Samsung Electronics weighting and newly added Changxin Memory Technologies (CXMT), China's largest DRAM maker. Analysts say that as capacity expansion by Chinese memory makers has emerged as a threat to Samsung Electronics and SK hynix, Chinese companies have begun entering global investment products in earnest.
According to Roundhill Investments on the 4th, the "Roundhill Memory ETF (DRAM)" added Changxin Memory at 3.09% on the 3rd, local time. DRAM is the first memory semiconductor ETF in the US, launched by Roundhill Investments in April this year. At the time of listing, it held Samsung Electronics as its largest position at about 25%, while including SK hynix and Micron Technology at about 24% each.
After the recent portfolio adjustment, Micron rose to the top holding at 25.73%. Samsung Electronics followed at 25.31% and SK hynix at 21.83%. This means Samsung Electronics, the largest holding at the time of listing, dropped to second place, while Micron rose to first. The combined weighting of these three global memory makers stands at 72.87%.
The addition of Changxin Memory is interpreted as a move to reflect the growth of China's memory industry in the portfolio. Changxin Memory has expanded its production capacity centered on commodity DRAM, emerging as a potential competitor in the global DRAM market led by Samsung Electronics, SK hynix, and Micron.
DRAM's net assets have recently swelled to $23.92 billion (about 33.488 trillion won). After surpassing $1 billion in net assets 18 days after listing, the fund has grown more than 20-fold in about four months. Investment enthusiasm among Korean retail investors in US stocks has also continued. According to the Korea Securities Depository, domestic investors' net purchase settlement of DRAM over the past week totaled $7,064,520 (about 10 billion won).
However, the securities industry views it as difficult for Changxin Memory to shake up the global memory market landscape in the short term. Noh Geun-chang, a researcher at Hyundai Motor Securities, analyzed: "With the large-scale capital investment by TSMC and the three global memory makers, Changxin Memory is expected to face significant difficulties securing foreign equipment. There is a possibility that US equipment sanctions against China will be further strengthened, and the likelihood of Apple and others installing Chinese memory semiconductors is minimal."
