The global memory leader, Micron Technology, reported its fiscal 2026 third-quarter results on June 24 local time. Q3 revenue reached $41.4 billion, a year-on-year increase of 346%, while net profit was $28.8 billion, soaring 1223% year-on-year, both figures significantly exceeding market expectations. The robust performance of this memory giant not only reflects the high activity in the global semiconductor supply chain but also adds substantial weight to the positive cycle for global semiconductor equipment and materials by raising its capital expenditure guidance.
The expansion wave among global memory manufacturers continues. Micron's net capital expenditures for the third quarter were $7.1 billion, with an expectation of $10.0 billion for the fourth quarter. The company anticipates capital expenditures of approximately $27.0 billion for fiscal 2026, with each quarter in fiscal 2027 expected to exceed the Q4 2026 level. This clear and defined expansion pace is poised to provide considerable incremental orders for upstream equipment and material suppliers, supporting the positive outlook for the global semiconductor equipment and materials sector.
Market capital continues to show significant interest in the semiconductor equipment and materials segment. The Sci-Tech Innovation Semiconductor Equipment ETF managed by Huatai-PineBridge (588710) saw its daily turnover exceed 6 billion yuan for two consecutive trading days (6/23-6/24), a notable increase compared to its year-to-date 2026 average daily turnover of 2.97 billion yuan. Alongside rising trading activity, the product has experienced net capital inflows for five consecutive trading days (6/17-6/24), attracting a total of 5.3 billion yuan. This has pushed the fund's latest size to 32.83 billion yuan, setting a new record high since its inception and demonstrating strong scale and liquidity.
Within the global AI-driven cycle, upstream semiconductor equipment and materials are indispensable hardware for chip manufacturing. The global memory expansion is driving upstream demand, with the potential to extend order visibility. A UBS view from June 15 suggests the semiconductor equipment upcycle may last much longer than market expectations. Global wafer fab equipment spending is projected to reach approximately $147 billion in 2026, climb further to around $198 billion in 2027, and potentially hit $247.5 billion in 2028.
Simultaneously, domestic semiconductor equipment and materials are expected to benefit from accelerated localization driven by the trend of self-reliance and controllability. Leading companies with core technological barriers are poised for opportunities involving both volume and price increases. The Huatai-PineBridge Sci-Tech Innovation Semiconductor Equipment ETF (588710) and its feeder funds (Class A 024974 / Class C 024975) track the Sci-Tech Innovation Semiconductor Materials & Equipment Index. This index has an 85% combined weight in the 'semiconductor equipment' and 'semiconductor materials' industries, with its weighting clearly tilted towards core segments of the industrial chain characterized by high technological barriers, strong order concentration, and significant room for increased localization, reflecting the industry logic of equipment leading the way.
The index's 100% stock selection from the Sci-Tech Innovation Board may impart greater elasticity. Over the past year, the index has gained 239%, outperforming several mainstream semiconductor-themed indices over the same period, such as the CSI Semiconductor Materials & Equipment Theme Index (223%), the CSI All Share Semiconductor Index (166%), the Sci-Tech Innovation Chip Index (199%), and the CNI Chip Index (156%).
As one of China's first ETF managers, Huatai-PineBridge Fund has been dedicated to the index investment field for over 19 years, providing investors with transparent, convenient, and low-cost index tool products like the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360). As of the end of March 2026, the company's ETFs had generated cumulative profits exceeding 223.4 billion yuan for holders over the preceding two years, making it one of only three public fund companies in the A-share market to achieve cumulative profits over two hundred billion yuan during that period.
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