The Chinese A-share semiconductor sector experienced a comprehensive rally on June 24th. At the close, the STAR 50 Index (000688.SH) rose 3.82% to 1,989.43 points, setting another all-time high. A total of 34 semiconductor-related stocks reached new historical peaks, covering key segments such as memory chips, semiconductor equipment, wafer fabrication, advanced packaging, and power semiconductors. Industry leaders with market capitalizations in the hundreds of billions, including Gigadevice Semiconductor Inc. (603986.SH), Hua Hong Grace Semiconductor Limited (688347.SH), Naura Technology Group Co.,Ltd. (002371.SZ), and Advanced Micro-Fabrication Equipment Inc. China (688012.SH), were all among them. Nearly ten semiconductor equipment stocks refreshed their historical highs, creating a sector-wide effect of new records.
Market analysis suggests the core drivers of this rally stem from two major expectations: first, the accelerated pace of domestic substitution within the semiconductor supply chain, with upstream equipment and materials gaining increasing market share; second, the approaching interim financial report season, where the industry's high growth momentum is anticipated to be further validated in the earnings reports.
STAR 50 Hits New High, 34 Semiconductor Stocks Follow Suit
In the market, the semiconductor sector was the absolute main theme, with capital concentrating on AI-related fields such as semiconductor equipment, advanced packaging, and memory chips, resulting in a screen full of record highs for the sector.
Statistics show that 34 semiconductor stocks hit new historical highs that day. From a market capitalization perspective, the list included industry giants like Naura Technology Group Co.,Ltd. (558.17 billion yuan), Hua Hong Grace Semiconductor Limited (549.12 billion yuan), and Gigadevice Semiconductor Inc. (494.80 billion yuan), alongside numerous "little giants" in niche fields with market caps in the tens of billions, presenting a pattern of broad-based strength.
Breaking it down by segment, the memory chip direction performed particularly well. Memory chip design and module manufacturers like Gigadevice Semiconductor Inc., Puya Semiconductor(Shanghai)Co.,Ltd. (688766.SH), Shenzhen Techwinsemi Technology Co.,Ltd. (001309.SZ), and Dosilicon Co.,Ltd. (688110.SH) collectively reached new highs.
Notably, the semiconductor sector is also highly concentrated with high-priced stocks. Shenzhen Techwinsemi Technology Co.,Ltd. and Piotech Inc. (688072.SH) closed above 800 yuan per share, while Naura Technology Group Co.,Ltd., Gigadevice Semiconductor Inc., and Puya Semiconductor(Shanghai)Co.,Ltd. all surpassed the 700 yuan mark. This brings the total number of semiconductor stocks priced above 100 yuan to 73, with 10 of them exceeding 700 yuan.
Leading stocks in the semiconductor equipment segment collectively set new highs. Multiple equipment stocks, including Skyverse Technology Co.,Ltd. (688361.SH), Beijing Huafeng Test&Control Technology Co.,Ltd. (688200.SH), Hangzhou Changchuan Technology Co.,Ltd. (300604.SZ), Acm Research (Shanghai), Inc. (688082.SH), Piotech Inc., Advanced Micro-Fabrication Equipment Inc. China, Hwatsing Technology Co.,Ltd. (688120.SH), Jht Design Co.,Ltd. (603061.SH), and Shenyang Fortune Precision Equipment Co.,Ltd. (688409.SH), simultaneously refreshed historical highs, covering various sub-segments like testing equipment, etching equipment, thin-film deposition, CMP, metrology/inspection, and components.
In the wafer fabrication segment, local foundries such as Hua Hong Grace Semiconductor Limited, Nexchip Semiconductor Corporation (688249.SH), and United Nova Technology Co.,Ltd. (688469.SH) also saw their share prices hit record highs. Additionally, several stocks in advanced packaging, semiconductor materials, and power semiconductors joined the new-high ranks. Companies like Jiangsu Yoke Technology Co.,Ltd. (002409.SZ), Union Semiconductor(Hefei)Co.,Ltd. (688403.SH), Yangzhou Yangjie Electronic Technology Co.,Ltd. (300373.SZ), and Thinkon Semiconductor Jinzhou Corp. (688233.SH) all set new price records.
Looking at year-to-date gains, the sector's profitability effect is significant. Among the 34 new-high stocks, Puya Semiconductor(Shanghai)Co.,Ltd. leads with a 481.9% increase. Jht Design Co.,Ltd. (300.2%), Shenzhen Techwinsemi Technology Co.,Ltd. (249.7%), and Beijing Huafeng Test&Control Technology Co.,Ltd. (242.4%) have all surged over 240% this year. Stocks like Gigadevice Semiconductor Inc., Shenyang Fortune Precision Equipment Co.,Ltd., Hangzhou Changchuan Technology Co.,Ltd., and others also boast gains exceeding 200%.
The fervor of the rally was also evident in the IPO market. Chongqing Genori Technology Co., Ltd. (688797.SH), a semiconductor equipment component supplier that debuted on the STAR Market that day, skyrocketed 1,212.84% to close at 585 yuan, representing a more than 12-fold increase from its IPO price of 44.56 yuan. Based on a standard STAR Market lot of 500 shares, the maximum paper profit per lot at the close was approximately 270,000 yuan, setting a new record for single-lot gains from a new listing this year.
Interim Reports as a Crucial Validation Window
Why is the semiconductor sector experiencing a collective surge at this juncture? Market analysis attributes it to the confluence of multiple positive factors.
Firstly, sustained high demand for AI computing power is driving benefits across the entire semiconductor supply chain. Institutional views point out that with the Agentic AI era fully arriving in the first half of 2026, global token consumption is growing rapidly. Both domestic and international cloud providers continue to increase capital expenditure on AI infrastructure. Nvidia's next-generation VeraRubin platform is entering full-scale production, and the inflationary pressure on the AI hardware supply chain is spreading from semiconductors to broader areas like PCBs and passive components, leading to a comprehensive wave of price increases across the semiconductor chain.
Memory chips have become a core theme of this rally. The AI era's surging demand for data storage, coupled with continuously rising memory prices, has ushered in a supercycle for the industry. According to the latest WSTS forecast, the global semiconductor market is expected to reach $1.511 trillion in 2026, a year-on-year increase of 89.9%. Memory sales are projected to grow by 249.5% year-on-year, serving as the primary driver of semiconductor market growth, with the market size potentially exceeding $800 billion, surpassing the total semiconductor market size of 2025.
Secondly, the logic of domestic substitution is deepening. The global semiconductor equipment market is predominantly monopolized by Japanese, American, and Dutch companies. While the localization rate is relatively high for equipment like strip and clean tools, it remains low for lithography machines, ion implanters, thin-film deposition equipment, and coat/develop tracks. There is also significant room for improvement in etching, metrology, and CMP equipment. As external regulatory pressures intensify, the continuous increase in the localization rate for semiconductor equipment and materials is an inevitable trend.
Institutions like Caitong Securities point out that against the backdrop of persistently tight overseas advanced capacity, shrinking supply in mature nodes, and rising demand for domestic AI chips, the importance of local foundries is rapidly increasing. Dongguan Securities also believes the domestic substitution theme is becoming more prominent, with upstream equipment and materials poised to benefit continuously. With the advancement of the national integrated computing power network, the importance of self-reliance in computing infrastructure is growing. Given ongoing external uncertainties, the demand for domestic self-sufficiency in computing chips, memory, semiconductor equipment, and core materials is more pronounced. For the equipment side, focus is suggested on etching, thin-film deposition, metrology/inspection, cleaning, ion implantation, and coat/develop tracks. For materials, attention is recommended on electronic special gases, wet electronic chemicals, photoresists, targets, precursors, and silicon wafers.
Furthermore, the gradual release of interim earnings previews, while validating the industry's high growth, has also acted as an emotional catalyst. Recently, semiconductor testing equipment firm Hangzhou Changchuan Technology Co.,Ltd. released its H1 performance forecast, expecting net profit attributable to shareholders of 900 million to 1 billion yuan, a year-on-year increase of 110.76% to 134.18%. Adjusted net profit is forecasted at 855 million to 955 million yuan, up 139.38% to 167.38% year-on-year, with the lower end of the forecast exceeding market expectations.
Based on the forecast, Hangzhou Changchuan Technology Co.,Ltd.'s Q2 net profit is estimated between 547 million and 647 million yuan, representing a sequential growth of 55% to 83%. In other words, the company's profit for Q2 2024 exceeded its total profit for the entire first half of 2023 (427 million yuan), indicating a step-change in performance growth. The company attributed the growth to the continuous realization of prior R&D investments, coupled with a significant release of demand from high-end downstream markets. Sales performance for multiple product lines, including digital testers, saw substantial growth, scale effects emerged, and sales revenue increased significantly.
This earnings preview quickly ignited market sentiment. On June 23rd, Hangzhou Changchuan Technology Co.,Ltd. saw intraday gains exceeding 9%. On June 24th, its stock price surged over 10% to hit a record high. More importantly, the strong start to the earnings season for Hangzhou Changchuan Technology Co.,Ltd. triggered a chain reaction. Nearly ten semiconductor equipment stocks, including Skyverse Technology Co.,Ltd., Yitang, and Beijing Huafeng Test&Control Technology Co.,Ltd., collectively reached new highs on the 24th, forming a clear sector-wide effect.
Looking ahead, interim financial results will become a core factor influencing the next phase of the semiconductor rally. As the July earnings season approaches, more semiconductor companies will release performance previews or formal reports. The sustainability of the industry's high growth and the degree of earnings realization across various sub-sectors will be validated in these reports. For the market, against the backdrop of already significantly elevated sector valuations, earnings certainty will be a key dimension for subsequent market differentiation.
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