The tech chip sector surged impressively on June 30th, with heavyweight leader Cambricon Technologies Corporation Limited (ASX: 688256) jumping over 7%, pushing its market capitalization beyond the one trillion yuan mark to become the first stock on the Sci-Tech Innovation Board to achieve this milestone. Hygon Information Technology Co., Ltd. also hit a new high with an intraday gain exceeding 6%, while Semiconductor Manufacturing International Corporation rose over 5%. Additionally, GalaxyCore Inc. and ASR Microelectronics Co., Ltd. hit their 20% daily limit-up, with eight other stocks including Sino IC Technology Co., Ltd., Southchip Semiconductor Technology (Shanghai) Co., Ltd., Yitang Semiconductor Co., Ltd., and Fengteng Technology Co. soaring more than 10%.
HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190), known for its comparatively low fee structure, saw its on-exchange price surge 4.57%, once again reaching a new all-time high. The tech chip sector has been on a continuous upward trajectory recently, attracting capital inflows as the market's dominant theme. Data from the Shanghai Stock Exchange shows that fund 589190 attracted a net inflow of 223 million yuan over the past five trading days.
Key Industry Developments
On the news front, the South Korean government, in collaboration with Samsung and SK Group, unveiled a historic investment plan totaling 475.5 trillion won for AI and semiconductor industry projects, the largest of its kind in the country's history. This initiative focuses on three core areas: semiconductors, physical AI, and AI data centers. South Korean officials stated they aim to double DRAM production capacity within five years, while also predicting the global memory market will quadruple in size over the same period.
Domestically, informed sources revealed that leading memory chip manufacturer Longsys has signed a long-term supply agreement valued at over 20 billion yuan with TENCENT (ASX: 00700). Simultaneously, Longsys is reportedly in talks with other major Chinese internet companies for similar collaborations. According to its IPO prospectus, Longsys's primary clients include Tencent, Alibaba Cloud, ByteDance, Lenovo, and Xiaomi. The combination of strong memory performance and a wave of capacity expansion continues to validate the sector's high growth trajectory.
Furthermore, global AI large model token calls reached 46.7 trillion tokens last week (June 22-28). Among the top models, Chinese AI models saw weekly calls reach 20.39 trillion tokens, an 8.4% increase week-over-week. This marks the fifth consecutive week of growth and the ninth consecutive week where China has surpassed the United States to lead globally.
Analyst Perspectives
One securities firm noted that the explosive growth in token calls creates a massive, non-negotiable demand for computing power, significantly benefiting the large-scale adoption of domestic chips. They pointed to recent discussions by ByteDance to procure domestic GPUs and integrate them into its core supply chain as a key signal that domestic chip products are gaining validation from leading internet giants for real-world applications. The interplay between booming AI model traffic and the adoption of domestic computing power presents a mutually reinforcing positive cycle, continuously raising the ceiling for the commercial growth of domestic chips.
Another securities firm indicated that with the interim earnings reporting season approaching, opportunities for earnings surprises in the memory and semiconductor equipment sectors warrant attention. Additionally, based on industry progress, they suggest focusing on materials and equipment benefiting from the memory capacity expansion trend. They remain optimistic about the potential for earnings and valuation upgrades for wafer fabrication plants.
Market Performance Context
It is worth highlighting that within this year's semiconductor market rally, tech chip stocks have demonstrated significant upward momentum. The Shanghai Stock Exchange Sci-Tech Innovation Board Chip Index has accumulated a gain of 110% year-to-date, outperforming other semiconductor chip indices.
Note: The historical annual performance of the Shanghai Stock Exchange Sci-Tech Innovation Board Chip Index for the past five full years is as follows: 2021: +6.87%, 2022: -33.69%, 2023: +7.26%, 2024: +34.52%, 2025: +61.33%. The index's constituent stocks are adjusted periodically according to its compilation rules, and its past performance does not guarantee future results.
Investment Vehicle Details
For investors seeking exposure to the chip industry's "super cycle," an ETF focused on high-volatility 20% limit stocks is an option. Public information shows that HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190) and its feeder funds track the Shanghai Stock Exchange Sci-Tech Innovation Board Chip Index. While providing balanced, full-chain exposure to the chip industry, it allocates over 90% of its weight to core areas like integrated circuits and semiconductor equipment, reflecting high "hard tech" content and strong offensive characteristics.
Public data indicates that fund 589190 has a management fee of 0.3% and a custody fee of 0.08%, resulting in a total expense ratio of 0.38%, which is relatively low among ETFs tracking the same underlying index.
Data sources include the Shanghai and Shenzhen stock exchanges. Analyst views are sourced from respective securities research reports dated June 21, 2026, and June 26, 2026.
ETF Fee Clarifications
Investors should note that subscription and redemption agents may charge a commission of up to 0.5% when buying or selling fund units, which includes fees charged by the stock exchange and registration institutions. For the feeder funds: Feeder Fund A charges a front-end subscription fee (0.5% for amounts below 1 million yuan, 0.2% for 1-2 million yuan, and a flat 1000 yuan for 2 million yuan and above). The redemption fee is 1.5% for holdings under 7 days and 0% for 7 days or more. Feeder Fund C does not charge a subscription fee. Its redemption fee is also 1.5% for holdings under 7 days and 0% for 7 days or more, with a sales service fee of 0.2% per annum.
Risk Disclosure
Fund 589190 passively tracks the Shanghai Stock Exchange Sci-Tech Innovation Board Chip Index (base date: Dec 31, 2019; release date: June 13, 2022). The fund is issued and managed by its fund management company. Distributors are not responsible for the product's investment, performance, or risk management. Investors should carefully read the Fund Contract, Prospectus, and Key Facts Statement to understand the fund's risk-return profile and choose products suitable for their own risk tolerance. The fund manager assesses this fund's risk rating as R4 (medium-high risk), suitable for investors with a suitability rating of C4 or above. The performance of other funds managed by the fund manager does not guarantee this fund's future performance. Past performance is not indicative of future results. Funds carry risks, and investment requires caution. Sales agencies (including the fund manager's direct sales and other distributors) evaluate this fund's risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions provided by the fund manager. Suitability opinions may differ among sales agencies, and a sales agency's risk rating for a fund product cannot be lower than the rating provided by the fund manager. The description of a fund's risk-return characteristics in its contract and its risk rating may differ due to different assessment factors. Investors should understand a fund's risk-return situation and make their own investment decisions, bearing the associated risks. The China Securities Regulatory Commission's registration of this fund does not indicate a substantive judgment or guarantee of its investment value, market prospects, or returns. Funds carry risks, and investment requires caution.
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