SMH is trading 2.3% down today following reports that a state-backed Chinese firm has achieved mass production of advanced chipmaking equipment.
- The development has raised concerns regarding the long-term effectiveness of U.S. export controls and signals intensified competition for major global chipmakers.
- The news has triggered a broader sector selloff, with semiconductor indices and major components trading lower globally, particularly across Asian markets.
- Sentiment remains weak as the ETF faces a sharp multi-day pullback, weighing heavily on the semiconductor sector in pre-market trading.