The Global X Semiconductor ETF (ASX: SEMI) offers Australians concentrated exposure to the world’s largest and most influential semiconductor companies — the chipmakers at the very heart of the artificial-intelligence boom. As AI has driven Demand for advanced chips to unprecedented levels, SEMI has been one of the most spectacular, and most volatile, performers on the ASX.

In September 2026, after an extraordinary run that has come with dramatic swings, the question for SEMI is whether semiconductor momentum can survive the Volatility that has come with it. This article explains how SEMI works, why it is in focus, and the catalysts and risks that could shape it from here.

What is the SEMI ETF?

SEMI is a passive thematic ETF issued by Global X ETFs Australia. It aims to track the Solactive Global Semiconductor 30 Index, before fees and expenses — a portfolio of 30 of the largest semiconductor companies across developed markets, Korea and Taiwan, spanning the semiconductor value chain from chip design to manufacturing. The fund charges a management fee of around 0.45% per annum, is currency-unhedged, and launched in 2021. It gives ASX investors focused exposure to the companies responsible for most of global microchip production.

The defining feature is concentration in semiconductors. The fund holds just 30 companies, heavily weighted towards the dominant chipmakers — the leading Taiwanese foundry, the key equipment makers, and the major US chip designers. That makes SEMI a pure, high-conviction bet on the semiconductor industry, which sits at the centre of AI, computing, electronics and countless other technologies. Because it is so concentrated in one industry, its returns can be driven as much by the semiconductor cycle and sentiment as by broad market trends.

What is driving interest now?

The central driver is the artificial-intelligence boom. AI requires enormous quantities of advanced chips — for Training and running models, powering data centres and enabling new devices — and that demand has driven semiconductor companies’ Earnings and share prices to extraordinary levels. SEMI’s concentrated exposure to the leading chipmakers has made it a direct way to express a bullish view on AI hardware.

The counterweight is volatility. Semiconductors are a famously cyclical industry, and the sector’s valuations have become elevated after the AI-driven surge. SEMI’s history shows dramatic swings — its unit price has moved through a very wide range over the past year, roughly tripling from its low before pulling back. That volatility reflects the concentrated, sentiment-driven nature of the fund. US interest rates, the semiconductor cycle, AI-spending trends and geopolitics all feed into returns, and the unhedged currency exposure adds a further variable.

Portfolio and holdings

SEMI’s portfolio is a concentrated basket of around 30 global semiconductor companies. Independent data has shown its largest holdings including the dominant Taiwanese foundry, the leading lithography-equipment maker, and the major US chip designers such as Nvidia and Broadcom, with the top holdings each carrying a substantial weight. The portfolio is almost entirely technology, spanning chip design, Manufacturing and equipment, with exposure across North America, Asia and Europe.

This concentration is the source of both SEMI’s spectacular returns and its extreme volatility. When the semiconductor cycle is strong and AI demand is booming, the fund can surge; when the cycle turns or sentiment shifts, the same concentration amplifies the downside. Investors should understand that SEMI is a pure, high-conviction bet on a single, cyclical industry — one that has been at the centre of the AI boom but that can be exceptionally volatile.

Catalysts to watch

Several factors could influence SEMI in the coming months: the AI and semiconductor cycle, the single biggest driver; the earnings and capital-spending plans of the major chipmakers; US Federal Reserve policy and its effect on high-valuation growth stocks; geopolitical developments affecting Taiwan and the global chip Supply chain; and the AUD/USD Exchange Rate for unhedged returns.

Risks

SEMI carries very high, specific risks. Concentration risk is extreme — just 30 companies in a single, cyclical industry. Volatility is very high, as the wide trading range shows. Semiconductor-cycle risk means a downturn in chip demand would hit the fund hard. Valuation risk after the enormous run is a serious consideration. Geopolitical risk is significant, given the concentration of chip manufacturing in Taiwan and Korea. Currency risk is unhedged. SEMI is an aggressive, high-volatility thematic holding, best viewed as a small satellite position rather than a core holding.

Outlook

SEMI offers Australians a concentrated, high-conviction way to access the semiconductor industry at the heart of the AI boom, and it has delivered spectacular but extremely volatile returns. Its near-term fortunes rest on the semiconductor cycle, AI demand, chip-maker earnings and geopolitics. Investors may be watching AI-spending trends, semiconductor earnings and Taiwan-related developments for direction. The outlook may depend on whether semiconductor momentum can survive the sector’s characteristic volatility, and investors should weigh the potential against the very high risk and the possibility of sharp drawdowns.