The A-share market opened lower but climbed higher on Wednesday, June 24th, with market focus concentrated on the AI hardware sector. The semiconductor, PCB, and optical communication segments collectively strengthened.
Within the semiconductor industry chain, advanced packaging and memory chips led the gains. GigaDevice Semiconductor Inc. (SHSE: 603986) hit the daily 10% limit-up late in the session, reaching a new high. Xichuang Data and Changchuan Technology also rose by 10%. In the PCB sector, Shengyi Electronics led with a 7% gain, while Shengyi Technology rose over 5%. For optical communications, Suzhou Tfc Optical Communication Co.,Ltd. (SZSE: 300394) saw a sharp intraday rally of over 4% late in trading. New Epoch and Zhongji Innolight also closed higher.
Key ETF Performances
Among popular ETFs, China's first technology leader-focused ETF, the Huabao Technology ETF (515000), closed up 3.67% in the secondary market, rebounding strongly to hit a new high since its listing nearly seven years ago. Its daily turnover exceeded 3 billion yuan, a high for the year, with net inflows surpassing 200 million yuan over the past three trading days.
Focus on a Specific AI Fund
Additionally, the ChiNext Artificial Intelligence ETF (159363), which has a significant focus on optical communication, opened lower but climbed higher, experiencing a rapid surge late in the session to close up 1.78%. The fund saw substantial net subscriptions of 74 million units in a single day, following previous net inflows of over 92 million yuan.
Analyzing the Optical Communication Rally
The late-session surge in TFC Optical Communication was boosted by news of its silicon photonics partner OpenLight collaborating with Advantest. The market views this as a signal of accelerated commercialization within the industrial chain. As the only listed company in the ecosystem focused on optical packaging and assembly, it has become a key target for capital. Analysis indicates the current period has entered the window for verifying mid-year report performance. Based on second-quarter industry trends, the high prosperity of the AI computing power chain continues to be realized, with leading optical module companies expected to see accelerated performance release in Q2.
Semiconductor Sector Strength Explained
The collective strength in the semiconductor industry chain is primarily attributed to TSMC's comprehensive price increase for 7nm and more advanced process nodes by 5%-10%, covering approximately 75% of its wafer revenue. The extent of the price hike exceeded expectations. Concurrently, Samsung and SK Hynix are accelerating the construction of new clusters in Yongin, with SK Hynix planning to bring forward the completion date of its fourth wafer fab by a decade to 2034 in response to the explosive demand from AI. The combined signals of price hikes and capacity expansion from industry giants have reinforced expectations of continued industry prosperity.
PCB Sector Rebound Rationale
The full rebound in the PCB sector may be related to the clarification of "price cut" rumors. While market rumors suggested PCB price reductions, feedback from the industry chain consistently pointed to price increases or price maintenance, indicating the rumors were unfounded. AI products are currently in an iteration and stockpiling phase, where supply security is the top priority, and price is not a primary consideration for customers. Research notes that AI inference bottleneck iteration and architectural evolution are driving a fundamental leap in the value positioning of PCBs. The explosion of diverse demands from Rubin, ASICs, LPUs, and others continues to broaden the growth space for the PCB industry.
Investment Strategy for Technology Bull Markets
For exposure to the technology bull market, focusing on leading companies is suggested. The Huabao Technology ETF (515000) and its feeder funds (Feeder A: 007873, Feeder C: 007874) select 50 large-scale, high-market-share, strong-growth, and high-R&D-investment listed companies from sectors like electronics, computers, communications, and biotech within the Shanghai and Shenzhen markets. This portfolio represents the core assets of A-share technology leaders, combining attributes of "hard tech beta" and "excess alpha from high-quality leaders."
Targeting Optical Communication Leaders
To target optical communication leaders, consider the ChiNext Artificial Intelligence ETF (159363), which leads its category in size and liquidity, along with its feeder funds (Class A: 023407, Class C: 023408). Its underlying index has a combined weighting exceeding 40% in Zhongji Innolight, New Epoch, and TFC Optical Communication, representing core players in AI computing power. Furthermore, the ChiNext Artificial Intelligence ETF (159363) has a latest size of 7.9 billion yuan, with an average daily turnover exceeding 900 million yuan over the past six months, ranking first in both size and liquidity within the dual-innovation AI investment theme.
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