The 14th Semiconductor Equipment, Core Components, and Materials Exhibition (CSEAC 2026) was held in Wuxi from August 31 to September 2. As a benchmark event in China's semiconductor equipment and core components sector, CSEAC 2026 brought together leading enterprises spanning the entire value chain, from upstream materials and core components to midstream manufacturing equipment and downstream packaging and testing.
At the expo, core players across the semiconductor equipment and materials supply chain unveiled heavyweight products and technology solutions, collectively showcasing breakthrough achievements and ecosystem synergies in critical areas of the domestic semiconductor industry. The event revealed a clear industry evolution: domestic substitution is shifting from isolated breakthroughs in complete equipment to deeper foundational efforts in core components and key materials, while advancing from "usable and workable" mature process nodes to "high-performance and leading" advanced processes and packaging. The transition also moves from individual company efforts to full-chain collaborative ecosystem competition.
Meanwhile, CITIC Securities noted that, based on WeChat public accounts of participating companies, order momentum in the semiconductor equipment supply chain is expected to improve further in Q3 2026, with industry players maintaining optimism about equipment demand over the next two to three years. In the medium to long term, advanced logic self-sufficiency, 3D NAND architecture upgrades, HBM, and advanced packaging are likely to continually unlock new equipment categories and value expansion potential.
From a supply chain perspective, upstream domestic components are advancing from peripheral support into core process segments, midstream equipment is expected to sustain robust growth, and downstream memory and advanced packaging technology upgrades continue to generate incremental equipment demand. Additionally, increased participation by overseas manufacturers and customers highlights growing interest in overseas demand for domestic equipment, components, and materials.
Amid these favorable industry expectations, a notable portion of capital has been actively positioning in the AI hardware sector during market pullbacks. According to Wind data, the STAR Semiconductor Equipment ETF Huatai-PineBridge (588710) attracted RMB 820 million in net inflows during August, pushing its latest asset scale and share count to RMB 11.326 billion and 11.563 billion units, respectively. Over a longer horizon, the ETF has recorded net capital inflows for four consecutive months (May through August), accumulating RMB 10.673 billion during that period.
The dense capital inflows are backed by continued earnings delivery from the sector. On August 31, 2026, as the semi-annual reporting season concluded, among the 30 constituent stocks of the underlying index tracked by the STAR Semiconductor Equipment ETF Huatai-PineBridge (588710), 27 reported revenue growth in H1 (90% of constituents), and 19 posted net profit growth (60%). Of these, seven saw net profit double, and ten recorded net profit growth exceeding 50%, highlighting strong profitability among constituents and further validating that AI hardware names are increasingly converting expectations into concrete order, capacity, and earnings visibility.
The STAR Semiconductor Equipment ETF Huatai-PineBridge (588710) tracks the STAR Semiconductor Materials & Equipment Index, with a high-conviction focus on the upstream "materials + equipment" segment, which collectively accounts for 89% of the index. Additionally, the index has over 80% exposure to the "memory chip" theme and over 67% to "advanced packaging", positioning it to benefit from memory expansion, wafer fab capital expenditure, and the domestic substitution drive. Off-exchange investors can access the strategy via the Huatai-PineBridge STAR Semiconductor Materials & Equipment Theme Feeder Fund (Class A: 024974, Class C: 024975).
From a historical performance perspective, the 100% STAR Market selection imparts strong elasticity to the index. Over the past year, the STAR Semiconductor Materials & Equipment Index has gained 130%, outperforming the Semiconductor Materials & Equipment Theme Index (119%), the CSI All-Share Semiconductor Index (48%), the STAR Chip Index (58%), and the Guozheng Chip Index (36%) among major semiconductor benchmark indices.
Semiconductor equipment and materials are high-beta sectors, and investors should be mindful of elevated valuations and trading volatility. It is advisable to assess individual risk tolerance before making decisions and invest prudently. One approach is to consider a barbell allocation strategy, pairing the growth potential of high-tech sectors with dividend-focused assets to help smooth portfolio fluctuations. For instance, combining the STAR Semiconductor Equipment ETF Huatai-PineBridge (588710)-related products with Huatai-PineBridge's "Dividend Family" suite could balance offensive and defensive positioning.
The STAR Semiconductor Equipment ETF Huatai-PineBridge (588710) and its feeder funds (Class A: 024974 / Class C: 024975) are managed by Huatai-PineBridge Fund Management, one of China's first ETF managers with over 19 years of index investing expertise. The firm offers transparent, cost-efficient, and easy-to-trade index tools including the CSI 300 ETF Huatai-PineBridge (510300) and the A500 ETF Huatai-PineBridge (563360). As of June 30, 2026, the company's ETFs have generated cumulative investor profits exceeding RMB 180.6 billion over the past two years, making it one of only three mutual fund firms in the A-share market with cumulative profits above RMB 160 billion during that period.
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