The stock of memory chip sector leader Gigadevice Semiconductor Inc. surged 9.09% on June 29, approaching its daily upward limit, with trading volume hitting a record high of 43.15 billion yuan, ranking first among A-shares. Year-to-date, Gigadevice's A-share price has surged nearly 300%, while its Hong Kong-listed shares have soared an astonishing 667.50%.
Significantly, according to public information, the globally popular Roundhill Memory ETF (DRAM) included Gigadevice's A-shares in its portfolio for the first time on June 27, with a weight of 2.91%, directly making it the fund's eighth-largest holding. Many industry insiders view this move as a sign that Chinese memory industry chain companies are gaining recognition from global passive funds.
Key Details of the ETF Inclusion
The Roundhill Memory ETF, known as DRAM, is a rare actively managed U.S.-listed ETF purely focused on memory. It precisely targets core AI infrastructure memory categories like DRAM, HBM, NOR Flash, and NAND, with clear screening criteria requiring holdings to derive over half their revenue from memory chip businesses. Since its launch on April 2, the ETF has grown to approximately $24.43 billion in assets and delivered returns exceeding 160%, making it one of the most outstanding and fastest-growing new ETF launches in recent years.
DRAM's portfolio is highly concentrated. As of the latest disclosure on June 28, the three global memory giants—Samsung Electronics, Micron Technology, and SK Hynix—collectively account for over 75% of the ETF's weight, serving as its core holdings. Samsung Electronics is the top holding with a 25.80% weight, followed by Micron Technology at 25.45% and SK Hynix at 24.56%.
Industry analysts note that DRAM's inclusion of Gigadevice, as a benchmark product among global pure-play memory theme ETFs, signifies that China's domestic memory industry chain is receiving validation from global active capital.
Other ETFs with Significant Gigadevice Exposure
In fact, several other ETF products in the A-share market also hold substantial positions in Gigadevice. For instance, Gigadevice is the top constituent stock of the SZSE Semiconductor Chip Index, with a weighting of 10.1566%. As of June 29, this index has gained 90.96% year-to-date, rising 5.07% on the day. Four ETFs track this index, including the largest one, ChinaAMC Chip ETF, with a size of 33.61 billion yuan. The total size of these four ETFs is approximately 47.19 billion yuan.
Furthermore, Gigadevice is the second-largest constituent of the CSI Chip Industry Index, with a weighting of 8.1110%. This index has surged 92.76% year-to-date, rising 5.43% on June 29 and gaining 32.42% for the month. Six ETFs track this index, with a total size of 9.83 billion yuan, including products from E Fund, Fullgoal Fund, and Eastmoney, each exceeding 2 billion yuan in size.
Several other indices also have Gigadevice weightings exceeding 5% or even 10%, with corresponding ETF products boasting considerable total assets under management.
Analyst Caution on Risks
Industry professionals simultaneously caution that the memory chip sector is highly cyclical, and the recent sharp rally has pushed valuations to historically high levels, making valuation volatility risks significant. Market participants are advised to continuously monitor key indicators such as industry supply-demand data and corporate earnings delivery to rationally navigate the cyclical market fluctuations.