Since January, the persistently strong semiconductor sector has once again become a market focus. However, amid this market rally, investors may be puzzled: which specific segment of the industrial chain is actually active in the market? For those seeking precise allocation, what investment tools should they choose?
The semiconductor industry chain is long and consists of many segments; a helpful analogy is to think of equipment as the "printing press," materials as the "paper and ink," and chip design as the "creative content." These three areas differ significantly in their technological paths, cyclical rhythms, and growth logics. The same applies to related investment targets. Taking the representative CSI Semiconductor Materials & Equipment Theme Index and the SSE STAR Market Chip Design Theme Index as examples, while their themes appear similar on the surface, their underlying compositions are quite distinct. Understanding these differences is key to aligning them with one's specific investment needs.
From a methodological perspective, the differences between the two indices are primarily reflected in their business scope, selection universe, and weighting schemes. The Semiconductor Materials & Equipment Index covers the mid-to-upstream materials and equipment sectors of the semiconductor industry, with its selection universe spanning the entire Shanghai and Shenzhen markets. A single constituent can have a maximum weight of up to 15%, potentially granting a higher weighting tilt towards leading companies. In contrast, the STAR Chip Design Index explicitly focuses on the chip design segment, with all its constituents selected from the STAR Market, and it sets a maximum single constituent weight cap of 10%.
Their industry distributions further highlight the differences in their positioning. Within the Semiconductor Materials & Equipment Index, the semiconductor equipment sector commands a dominant weight of 62.8%, while semiconductor materials account for 23.7%, concentrating on key equipment for wafer manufacturing, etching, deposition, cleaning, and testing, as well as materials like silicon wafers, photoresists, and specialty gases. Conversely, within the STAR Chip Design Index, the digital chip design sector—encompassing areas such as CPUs, GPUs, and AI accelerator chips—holds a dominant weight of 76.3%, with the analog chip design sector accounting for 17.9%, making it more directly aligned with computing power and end-application demands.
Drilling down to the constituent level, the two indices "represent different branches," with no overlap in their sample constituents, accurately reflecting the different camps within the industry chain's upstream and downstream. The top ten holdings of the Semiconductor Materials & Equipment Index include equipment leaders such as NAURA, AMEC, Piotech, and Hwatsing, alongside materials pioneers like NSIG and Anji Technology, with the combined weight of the top ten exceeding 65%. Meanwhile, the top ten holdings of the STAR Chip Design Index include companies such as Hygon, Montage Technology, Cambricon, and VeriSilicon, mostly leaders in AI computing and high-end chip design, with a combined weight of approximately 57%.
Table: Top Ten Constituents of the Two Indices
Note: Data source: Wind, as of January 28.
Against the backdrop of intensifying global technological competition, the ongoing trend of domestic substitution, and strong policy support for the industry, the strategic value and growth potential of the semiconductor sector are becoming increasingly prominent. Currently, there are ETF products tracking the above two indices available in the market for investors to choose from. For those bullish on the innovative potential of the chip design sector and the explosive growth in downstream demand, investment opportunities in products like the E Fund STAR Chip Design ETF (589030) can be considered. For investors who place greater emphasis on the foundational role and domestic substitution progress within the equipment and materials sectors, products such as the E Fund Semiconductor Equipment ETF (159558) offer a way to gain exposure to the core companies in this field.
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