On May 28, the chip sector on the Sci-Tech Innovation Board showed repeated activity, with the foundry segment leading a strong rally. Yandong Micro surged by 20%, Hua Hong Semiconductor Limited soared over 16%, Jinghe Integration gained more than 12%, and Semiconductor Manufacturing International Corporation (SMIC) rose over 6%. Both Hua Hong Semiconductor Limited and SMIC hit historic intraday highs. Additionally, semiconductor materials remained active, with Shanghai Sinyang Silicon Materials and Zhongchuan Special Gas posting double-digit gains.
The HUABAO SHANGHAI SCI TECH INNOVATION BOARD CHIP TRADING OPEN ENDED INDEX SECURITIES INVESTMENT FUND, which provides comprehensive exposure to the chip industry, extended its gains in the afternoon session. Its intraday price increased by 2.53%, with real-time turnover exceeding 99 million yuan, surpassing the previous day's full-day volume, indicating a rapid rise in investor interest. Amidst recent heightened market volatility, the fund has seen capital inflows exceeding 140 million yuan for two consecutive days.
Recent reports indicate that Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract chipmaker, plans to raise prices for its 3-nanometer process technology in the second half of the year by up to 15%, as client demand continues to outpace supply capacity. This follows media reports from the previous day suggesting TSMC intends to increase 3nm pricing again in the latter half of the year, with potential additional hikes of 5% to 10% next year.
Industry analysts note that with demand surging from AI accelerators, custom ASICs, flagship smartphone chips, and high-performance computing (HPC), 3nm capacity remains fully utilized. Advanced process technology has become the most critical strategic resource in the global semiconductor competition.
Guosheng Securities stated that against the backdrop of simultaneous growth in both advanced and mature process technologies, they remain firmly optimistic about the current semiconductor supercycle. Domestic manufacturers and equipment suppliers are expected to benefit significantly from breakthroughs in domestic semiconductor technology and capacity expansion.
For exposure to the chip industry's "super cycle," high-beta instruments are a preferred choice. Public information shows that the HUABAO SHANGHAI SCI-TECH INNOVATION BOARD CHIP ETF and its feeder funds passively track the SSE STAR Market Chip Index. While providing balanced, full-chain exposure to the chip industry, the ETF allocates over 90% of its weight to core sectors such as integrated circuits and semiconductor equipment, highlighting its high concentration in hard technology and strong growth potential.
(Note: Standard ETF and fund fee disclosures, along with standard investment risk warnings regarding fund performance, risk ratings, and the necessity for investors to consult fund documents and assess their own risk tolerance, are implied here per financial reporting conventions.)