US memory ETFs add CXMT at 12.97% weight on AI demand

Two US memory-chip ETFs have made Chinese DRAM maker CXMT a top holding, a sign global funds are betting on China's semiconductor supply chain.

Two US memory-chip ETFs have pushed Chinese DRAM maker CXMT into top holdings, with Tema's DISK fund allocating 12.97 percent and Roundhill's DRAM fund 2.52 percent, as global funds bet on China's chip supply chain.

"The additions reflect a broader re-rating of Chinese hardware as AI models drive demand for memory," Li Zhuo, a fund manager at Peng Hua Fund, said.

Roundhill's DRAM fund, the first pure memory-chip ETF and listed April 2 on US exchanges, holds Samsung Electronics at 26.39 percent, Micron Technology at 24.54 percent and SK Hynix at 22.77 percent. CXMT sits eighth at 2.52 percent, while GigaDevice, added in June at 2.91 percent, has slipped to 1.51 percent. Tema's DISK fund, which bought CXMT on its first trading day, holds the stock at 12.97 percent and had $77.37 million in assets as of July 31, after growing more than 30-fold in July.

The allocations give international investors a direct route into China's DRAM sector, where CXMT supplies chips for mobile devices, PCs, servers, virtual reality and the internet of things. With AI server demand lifting the memory cycle, funds see Chinese suppliers as a lower-cost hedge against US chip exposure, though export controls on advanced semiconductors remain a risk to the flow.

Two Funds, Two Weights on CXMT

Roundhill's DRAM fund, launched by Roundhill Investments and the first vehicle focused purely on memory chips, added CXMT as its eighth-largest position as of Aug. 2. The Shanghai-listed company, China's main DRAM producer, now sits alongside Samsung, Micron and SK Hynix in a portfolio that also includes Seagate Technology, Western Digital, SanDisk, Kioxia, Nanya Technology and GigaDevice.

Tema's DISK fund took a more aggressive stance, making CXMT its largest holding at 12.97 percent. The actively managed ETF bought the stock on its first day of trading, giving it a weight above 10 percent that pushed it straight into the top 10. DISK's assets reached $77.37 million by July 31, up more than 30-fold during the month.

AI Demand Drives the Memory Cycle

CXMT focuses on DRAM chips used across mobile devices, computers, servers, virtual reality and the internet of things, while GigaDevice spans memory, microcontrollers and sensors. Both are positioned to benefit as AI servers and high-performance computing lift demand for memory capacity.

Li said the AI penetration of tech hardware remains low, and rapid model iteration will keep improving profitability across the supply chain. As trading disruptions ease and the industry logic becomes clearer, hardware remains a key source of returns, he said. Jiashi Fund expects 2026 to 2028 to be the period when domestic computing power moves from narrative to orders and earnings, as rising inference demand and chip localization improve supply.

The ETF additions give global investors a way to own China's memory supply chain without direct A-share access. CXMT and GigaDevice shares could see inflows as the funds rebalance, though US export controls on advanced chips and the risk of further restrictions could temper the enthusiasm.

This article is for informational purposes only and does not constitute investment advice.