sSEMIS Index

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Why This Basket Matters

The semiconductor industry depends on a specific set of raw materials at every stage of chip manufacturing. From copper interconnects to silicon wafers, these commodities form the physical foundation of the digital economy. Global chip shortages have demonstrated how material constraints propagate through supply chains. sSEMIS provides direct exposure to the commodity inputs that define semiconductor production capacity—independent of any individual company’s execution or market share.

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Composition

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How It’s Priced

The sSEMIS index value is calculated as a weighted sum of component prices: $$I_{SEMIS}(t) = 0.30 \cdot P_{Si}(t) + 0.25 \cdot P_{Cu}(t) + 0.15 \cdot P_{Al}(t) + 0.15 \cdot P_{Sn}(t) + 0.15 \cdot P_{Ag}(t)$$ Price sources:

• Oracle Provider (TBD) supplies institutional-grade commodity reference prices
• Prices normalized to USD
• Update cadence: (TBD — confirm)

On-chain representation:

• 8 decimal precision
• Chainlink-style interface
• Published by Scape keeper/relayer

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Where It’s Available

sSEMIS is available as a HIP-3 perpetual contract on Hyperliquid testnet.

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Sector Context

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Why These Commodities?

Silicon (30%): Every semiconductor chip starts with a silicon wafer. Ultra-pure polysilicon is refined into ingots, sliced into wafers, and processed into chips. No silicon, no chips. Copper (25%): Modern chips contain miles of copper interconnects. As transistors shrink, copper wiring becomes the limiting factor for signal speed and heat dissipation. Aluminum (15%): Used in packaging, bonding wires (for cost-sensitive applications), and thermal management. Critical for connecting dies to the outside world. Tin (15%): Lead-free solder regulations have made tin essential for chip assembly. Every chip is soldered to its package and its board. Silver (15%): High-performance applications use silver for its superior conductivity. Die attach, conductive adhesives, and advanced packaging rely on silver.

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Supply Chain Dynamics

• Geographic concentration: Silicon and rare materials have concentrated supply chains
• Processing requirements: Semiconductor-grade purity requires specialized refinement
• Lead times: Capacity expansions take years to complete
• Demand cyclicality: Semiconductor cycles drive commodity demand

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Roadmap: sSEMIS → xSEMIS

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Risk Factors

Index-specific risks:

• Tech cycle exposure: Semiconductor demand is cyclical; downturns can be severe
• Substitution risk: Technology changes may shift material requirements
• Geographic risk: Supply concentration in specific regions

General risks:

• Liquidation risk
• Oracle risk
• Smart contract risk
• Testnet risk