Meta recently launched its personal AI agent, Muse, which autonomously handles tasks like sending emails and booking travel. The application quickly topped the US iOS free app chart after its release. The accelerating rollout of AI agent applications is elevating demand for computing power and infrastructure capacity, further lifting market expectations for server CPU requirements.
As the semiconductor supply chain sees improving fundamentals, investor interest in the sector is climbing. Reflecting this momentum, the popular Huatai-PineBridge STAR Semiconductor Equipment ETF (588710) has remained highly active, with daily trading turnover exceeding one billion yuan for five consecutive sessions. Its average daily turnover during this period reached 1.433 billion yuan, a notable increase from the 779 million yuan daily average seen since the start of the year. (Data source: Wind, as of 26/9/21)
While international application-layer innovation continues to progress, China's domestic semiconductor industry is also entering a phase of concentrated technological breakthroughs. Key advances are emerging in both memory and processor segments. On September 20, a leading domestic memory manufacturer announced at the 2026 World Manufacturing Convention that its fifth-generation process technology platform has officially achieved mass production, also showcasing high-capacity LPDDR5X products. Meanwhile, a leading domestic processor developer disclosed plans to unveil its 1000-series CPU processors in Shenzhen on September 22. These new chips are designed with low-power advantages, precisely targeting embedded and edge-computing applications, further strengthening the domestic computing hardware ecosystem.
As global AI infrastructure investment accelerates, industry capital expenditure forecasts are being revised significantly upward, potentially unlocking greater growth space for the semiconductor sector. According to UBS's latest projections, global AI-related capital spending is expected to reach USD 998 billion in 2026, nearly doubling from the USD 506 billion estimated for 2025. The core driver behind this major upward revision comes from recovering global memory market prices and surging demand. Analysts forecast global memory spending will jump dramatically from USD 71 billion to USD 367 billion in 2026, positioning the memory segment as a pillar of AI computing investment growth.
Price data further confirms the positive semiconductor industry trend. TrendForce data indicates that NOR Flash contract prices are projected to rise an average cumulative 100% to 120% in the first half of 2026. For high-capacity products of 256Mb and above, sustained demand from AI servers and automotive applications, coupled with limited new bit supply from major manufacturers, suggests average prices could still climb another 90% to 110% in the second half of the year. DDR5 spot prices are also entering an upward trajectory. Apple has reportedly finalized Samsung Electronics' memory chip supply pricing for the first quarter of 2027, reflecting a 30% to 40% price increase compared to this year's third quarter, solidifying expectations for continued volume and price gains in the memory sector.
Positioned to benefit from both the AI hardware wave and domestic substitution catalysts, the Huatai-PineBridge STAR Semiconductor Equipment ETF (588710) and its feeder funds (Class A: 024974 / Class C: 024975) track the SSE STAR Market Semiconductor Materials and Equipment Theme Index. This index allocates 88% of its weight to the combined "semiconductor equipment and semiconductor materials" industries. Unlike other semiconductor theme indices that select stocks from both Shanghai and Shenzhen markets, this index's exclusive focus on the STAR Market may offer greater elasticity. Over the past year, the STAR semiconductor materials and equipment index has gained 136%, outperforming the CSI Semiconductor Materials and Equipment Theme Index's 121% gain over the same period.
Huatai-PineBridge Asset Management is among China's first batch of ETF managers, with over 19 years of expertise in index investing. The firm offers transparent, efficient, and low-cost index tools including the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge CSI A500 ETF (563360). As of the end of June 2026, the company's ETFs have generated cumulative profits exceeding RMB 180.6 billion for holders over the past two years.
Performance notes: The STAR Semiconductor Equipment ETF Huatai-PineBridge was established on 2025/5/26, achieving a return of 318.82% from inception to June 30, 2026, compared to a 66.20% gain in its benchmark, the SSE STAR Market Semiconductor Materials and Equipment Theme Index. Fund manager: Li Muyang (since 2025/5/26).
Risk level notes: The STAR Semiconductor Equipment ETF Huatai-PineBridge and its feeder funds carry a risk rating of R4, while the CSI 300 ETF (510300) and A500 ETF (563360) are rated R3. Risks vary by distributor based on investor suitability regulations. Commissions of up to 0.5% may apply when subscribing or redeeming ETF shares through authorized brokers, covering fees charged by exchanges and registration institutions. Secondary market trading commissions follow the standards of the respective brokerage firm, and stamp duty is waived. For the feeder funds, Class A shares have subscription fees of 1.2% for amounts under RMB 1 million, 0.9% for amounts between RMB 1 million and RMB 5 million, and a flat RMB 1,000 fee for amounts of RMB 5 million or more; Class C shares charge no subscription fee. Redemption fees: within 7 days, both Class A and C charge 1.5%; from 7 to 30 days, Class A charges 0.1% while Class C charges 0%; beyond 30 days, both are 0%. Sales service fees are 0% for Class A and 0.20% annually for Class C.
Risk warning: Funds involve risks and investors should proceed with caution. Before purchasing any fund product, please review investor suitability regulations, complete a risk assessment, and select products matching your risk tolerance. Past performance does not guarantee future results. Carefully read the fund contract, prospectus, and product summary before investing. The ETF invests in the STAR Market, which carries specific risks related to that board's unique mechanisms, including but not limited to greater stock price volatility, liquidity risks, and delisting risks. The index is compiled and published by CSI, which owns the index; CSI takes necessary measures to ensure accuracy but makes no guarantees and accepts no liability for any index errors.
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