On June 4th, the semiconductor sector continued its upward momentum, with semiconductor materials and equipment leading the gains. Peric Special Gases Co.,Ltd. (ASX: 688146) surged by the 20% daily limit, while Shanghai Sinyang Silicon Materials Co., Ltd. and Hua Feng Test & Control Technology Co.,Ltd. rose over 10%. Among restarted A+H shares, Biwin Storage Technology Co.,Ltd. (ASX: 688525) climbed more than 8%, and Hua Hong Company Limited advanced over 6%. The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND (ASX: 589190), which provides comprehensive exposure to the chip industry, saw its on-exchange price rise another 2% for its third consecutive daily gain.
Market Drivers and Forecasts
On the news front, the World Semiconductor Trade Statistics organization, comprised of major semiconductor manufacturers, released a forecast report on June 2nd. Driven by rapidly expanding artificial intelligence demand, the global semiconductor market size in 2026 is projected to increase by nearly 90% year-on-year, surpassing $1.5 trillion USD. The growth rate for 2026 is also expected to reach a record high. By product category, the report forecasts that memory chips will see a staggering year-on-year increase of 249.5% this year, breaking through the $800 billion USD mark and surpassing the total semiconductor market size of 2025.
Analyst Perspective on the Sector
China Merchants Securities believes that against the dual backdrop of rapid AI development and overseas technology restrictions, the domestic semiconductor chip industry is simultaneously benefiting from AI capital expenditure expansion and ongoing domestic policy support. Represented by three key areas—memory, domestic computing power chips, and equipment materials/components—the industry chain's prosperity continues to rise, with industry revenue and profits gradually entering a realization phase.
Capturing the Chip Industry's Growth Phase
For investors looking to position for the chip industry's significant growth cycle, high-beta instruments are a key consideration. Public information shows 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. While offering balanced allocation and full-chain exposure to the chip industry, the fund maintains a weight exceeding 90% in core areas like integrated circuits and semiconductor equipment, reflecting its high concentration in hard technology and strong growth potential.
Important Fund Information and Risk Disclosure
When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%, which includes relevant fees charged by stock exchanges and registration institutions. For the feeder funds, the subscription fee (front-end load) for the Class A shares is 0.5% for amounts below 1 million RMB, 0.2% for amounts between 1 million and 2 million RMB, and a flat fee of 1,000 RMB for amounts of 2 million RMB and above. The redemption fee for Class A shares is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. The Class C shares do not charge a subscription fee. The redemption fee for Class C shares is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more, with a sales service fee of 0.2% per annum.
Risk Warning: The Huabao Sci-Tech Innovation Board Chip ETF passively tracks the SSE Sci-Tech Innovation Board Chip Index. The index base date is December 31, 2019, and its release date was June 13, 2022. This product is issued and managed by Huabao Fund Management Co., Ltd. Selling agents do not assume responsibility for the product's investment, performance, or risk management. Investors should carefully read the Fund Contract, Prospectus, Fund Product Key Facts Statement, and other legal fund documents to understand the fund's risk-return characteristics and select a product 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 and above. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance of the fund does not indicate its future results. Funds carry risks, and investment requires caution. Selling institutions (including the fund manager's direct sales channels and other sales institutions) assess the risk of this fund according to relevant laws and regulations. Investors should pay timely attention to the suitability opinions issued by the fund manager. Suitability opinions from different sales institutions may not necessarily be consistent, and the fund risk rating results issued by fund sales institutions shall not be lower than the risk rating results made by the fund manager. The description of the fund's risk-return characteristics in the Fund Contract and its risk rating may differ due to different consideration factors. Investors should understand the fund's risk-return profile and choose fund products cautiously based on their own investment objectives, horizon, experience, and risk tolerance, bearing the risks themselves. 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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