On March 25, A-shares opened higher and continued to advance, with semiconductor chips leading the gains. The Huabao Shanghai Sci-Tech Innovation Board Chip ETF (589190), which offers comprehensive exposure to the chip industry, saw its market price rise by 3.52%, marking two consecutive days of gains from a low point and climbing above its 5-day moving average. Stocks within the sector rallied collectively, with Jiehua Te and Biwin Storage Technology Co., Ltd. (688525) surging over 12%, with the latter reaching a new historical high.
The positive momentum follows news that domestic storage chip contender Biwin Storage has signed a $1.5 billion contract for memory wafer procurement. This move aims to secure stable medium- to long-term wafer supply and mitigate cost impacts from price fluctuations in the memory wafer market.
Memory chip prices surged significantly in the first quarter of 2026. Data from Sigmaintell shows that consumer electronics memory prices in Q1 2026 increased by over 60% compared to the fourth quarter of 2025, with NAND flash memory prices rising more than 70% quarter-over-quarter, setting a record for the highest single-quarter increase in recent years. According to Sinolink Securities, a triple resonance of "AI technology revolution + global capacity restructuring + breakthroughs in domestic substitution" could position the domestic memory chip supply chain as the biggest winner in this cycle.
Additionally, in the realm of domestic substitution, Chinese chips are progressing from "usable" to "high-performing" under the combined drive of policy support, market demand, and ecosystem development. This has established a complete closed-loop and positive cycle spanning chip design, manufacturing, and packaging and testing. Shanxi Securities believes that with AI computing demand remaining robust, domestic chips are accelerating their breakthroughs. Against a backdrop of strong training and inference demand, domestic chip manufacturers are poised to rapidly capture market share, presenting clear investment opportunities across the industrial chain.
For investors seeking exposure to the chip industry's "super cycle," high-growth potential stocks are a preferred choice. Public information indicates that the Huabao Sci-Tech Innovation Board Chip ETF (589190) and its feeder funds (Class A: 021224, Class C: 021225) passively track the SSE Sci-Tech Innovation Board Chip Index. This index includes 50 companies involved in semiconductor materials and equipment, chip design, manufacturing, packaging, and testing, offering broad exposure to the chip industry. It maintains over 90% weighting in core segments like integrated circuits and semiconductor equipment, reflecting high technological content and strong barriers to entry.
Data shows that as of the end of 2025, the SSE Sci-Tech Innovation Board Chip Index had an annualized return of 17.93% since its base date, significantly outperforming peers such as the STAR Market Semiconductor Index, the China Semiconductor Index, and the CSI All Share Semiconductor Index. It also exhibited smaller maximum drawdowns and a superior risk-return profile.
The MACD golden cross signal has formed, indicating positive momentum for these stocks.
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