On May 19th, the Semiconductor Equipment ETF China Merchants (561980) surged 6.06%, topping the ETF gainers list in both markets, and reached a new high for the 17th time this year during intraday trading! All weighted constituent stocks exploded: AMEC soared 9.29% leading the charge, Cambricon surged 8.40%, Changchuan Technology jumped 7.11%, Tuojing Technology rose 5.66%, and Northern Huachuang increased by 3.63%. The fund's scale has skyrocketed by 37.36% this year to approximately 3.5 billion yuan!
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Multiple favorable factors ignited the market: Policy + Performance + Technology triple resonance
<ol>
<li>Frequent policy tailwinds, domestic substitution hits the &#34;accelerator&#34;</li>
</ol>
Recently, senior officials have intensively researched the semiconductor industry chain, clearly emphasizing the acceleration of key core technology breakthroughs. In mid-May, relevant ministries held a symposium on the semiconductor equipment industry, releasing strong signals of policy support. The market anticipates a new round of industrial support policies is imminent, with semiconductor equipment expected to receive comprehensive policy tilt in funding, taxation, procurement, etc., as it is a breakthrough point for &#34;bottleneck&#34; technologies.
<ol>
<li>Leading companies' performance confirms, full orders boost confidence</li>
</ol>
AMEC: The first quarter report shows revenue growth of over 40% year-on-year, with etching equipment orders remaining robust. The company recently received additional orders from leading domestic wafer fabs, and breakthroughs have been made in the verification of 5nm process equipment, with its technical strength recognized internationally.
Northern Huachuang: The recently disclosed investor research minutes show that the company's orders on hand are scheduled until next year, covering equipment in multiple fields such as etching, thin films, and cleaning, with capacity expansion projects progressing smoothly.
Cambricon: Benefiting from the explosive demand for AI large model training, its smart chips and accelerator card shipments have significantly increased, with a substantial narrowing of losses in the first quarter, and the market expects it to turn profitable for the full year.
<ol>
<li>Confirmation of industrial prosperity turning point, strong recovery in downstream demand</li>
</ol>
According to the latest data from SEMI (Semiconductor Equipment and Materials International), global semiconductor equipment sales have risen for three consecutive months, with equipment spending in mainland China increasing by over 20% year-on-year. The domestic wafer fab expansion wave has resumed, with leading companies such as SMIC, Hua Hong Semiconductor, and Yangtze Memory Technologies announcing new rounds of capital expenditure plans, directly benefiting upstream equipment suppliers.
<ol>
<li>Technological breakthroughs catalyze valuation reshaping</li>
</ol>
Recently, several domestic equipment companies have reported technological breakthroughs:
Tuojing Technology's PECVD equipment has passed certification from international first-tier customers, breaking the foreign monopoly;
Changchuan Technology's testing equipment has successfully entered the advanced packaging field, filling a domestic gap;
AMEC's plasma etching equipment has reached international advanced levels, with some indicators surpassing overseas competitors.
The narrowing of technological gaps combined with cost advantages makes the increase in market share for domestic equipment unstoppable.
<ol>
<li>Funds pouring in, institutions shout &#34;golden allocation period&#34;</li>
</ol>
Data shows that since May, northbound funds have cumulatively net bought over 8 billion yuan in the semiconductor sector, with the proportion of public funds' holdings increasing by 1.2 percentage points month-on-month
Multiple brokerages have released research reports bullish on the semiconductor equipment sector: China International Capital Corporation pointed out that domestic equipment companies are experiencing a &#34;triple boost&#34; of orders, performance, and valuation; Huatai Securities believes that the current sector valuation is still at the historical median, offering high cost-effectiveness; Guotai Junan even stated that semiconductor equipment is the most certain technology mainline for the next three years.
From an industry cycle perspective, the global semiconductor equipment market size exceeds $100 billion, while the market share of domestic equipment is only about 15%, indicating significant room for improvement. With the continuous expansion of domestic wafer fab capacity and geopolitical factors driving supply chain localization, domestic equipment companies are expected to continue benefiting.
Institutions generally believe that the semiconductor equipment sector has entered a 3-5 year upcycle, suggesting that investors seize the dual beta opportunities of domestic substitution and industry recovery. The semiconductor equipment ETF (561980) serves as a tool for easily allocating quality targets, highlighting its allocation value

688012

688256

561980

The Semiconductor Equipment ETF China Merchants (561980) surged 6.06% on May 19, reaching a new high for the 17th time this year. Key stocks such as AMEC and Cambricon performed outstandingly, rising 9.29% and 8.40%, respectively. The fund's size has grown by 37.36% this year to approximately 3.5 billion yuan, influenced by multiple favorable factors including policy support, improved performance of leading companies, and a recovery in downstream demand. The market anticipates that a new round of industrial support policies will be introduced soon

同壁财经

AMEC

Cambricon

China Merchants CSI Semiconductor Industry ETF

CCTech

Piotech

NAURA

SMIC

HUA HONG SEMI

Hua Hong

CICC

HTSC

Guotai Haitong

GTHT

SMIC HK SDR 5to1

Huatai Securities Co., Ltd. GDR Class A RegS

The 17th new high of the year! The semiconductor equipment ETF China Merchants (561980) surged 6% to dominate both markets! AMEC rose nearly 10%!