This Semiconductor ETF Is Up 54% This Year and Refuses to Own Intel - 24/7 Wall St.

In 2026, the VanEck Fabless Semiconductor ETF (SMHX) has surged 54.22% year-to-date through July 2, despite excluding one of the most recognizable names in the semiconductor industry—Intel. The fund, ... Read original →

SMHX’s 54% surge reflects capital’s bet on the decoupling of chip design from manufacturing—a trend powered by TSMC’s dominance in 3nm and EUV nodes. Fabless leaders like NVIDIA and AMD leverage this to accelerate AI silicon innovation, but their near-total reliance on foundries in Taiwan, China exposes systemic supply chain fragility under rising geopolitical friction. Intel’s exclusion stems from its IDM model, yet its 226% YTD gain signals a resurgence in vertical integration, amplified by U.S. CHIPS Act incentives and advanced packaging breakthroughs. Over the next 12–24 months, policy-driven reshoring in the U.S. and EU will pressure fabless firms to diversify beyond pure outsourcing, potentially birthing hybrid manufacturing strategies. Investors fixated solely on design exposure risk missing the next wave of value creation in resilient, localized production.