On July 15th, SEMI released its Mid-Year Semiconductor Equipment Forecast Report. The report projects that global sales of semiconductor manufacturing equipment will grow 23.2% year-over-year in 2026 to reach $165.9 billion. Within this total, sales of wafer fabrication equipment are expected to increase by 23.1% to $143.9 billion, while sales of test equipment are forecast to rise by 31%. This growth momentum is anticipated to continue through 2028, with total equipment sales potentially reaching a record $229.5 billion, marking five consecutive years of expansion. SEMI attributes this trend to demand for advanced logic, advanced memory, testing, and packaging driven by artificial intelligence, which is prompting chipmakers to increase their equipment investments.
On the same day, the global lithography leader, ASML Holding NV, reported its second-quarter 2026 results, disclosing net sales of approximately €9.3 billion, a gross margin of 54.0%, and net profit of about €2.9 billion. The company also raised its full-year 2026 net sales guidance to a range of €43 billion to €45 billion. ASML executives noted that AI-related investments are fueling demand for advanced logic and memory chips. The company plans to increase its production capacity for low-NA EUV and immersion DUV systems by approximately 30% in 2027, building upon its 2026 plans.
Despite recent volatility and adjustments in the semiconductor sector, the Huatai-PineBridge Sci-Tech Innovation Semiconductor Equipment ETF (588710) has garnered increasing attention against the backdrop of rising equipment demand expectations. Data from Wind and the stock exchanges shows that this ETF has attracted a net capital inflow of 44.55 billion yuan since the beginning of July, with an average daily trading volume of 1.881 billion yuan during the same period, highlighting its large scale and superior liquidity. The ETF's latest assets under management and outstanding shares have reached 8.67 billion yuan and 2.484 billion shares, respectively, with the share count setting a new historical high.
The Huatai-PineBridge Sci-Tech Innovation Semiconductor Equipment ETF (588710) tracks the Sci-Tech Innovation Semiconductor Materials & Equipment Index. This index offers a high-purity focus on the upstream semiconductor "materials + equipment" sector, with a combined industry weighting of approximately 87%, making it highly sensitive to capital expenditures by wafer fabs, memory capacity expansions, and domestic substitution trends. Concurrently, the index has an over 70% weighting in memory chip concepts and a 58% weighting in "advanced packaging" concepts. Off-exchange investors can consider the Huatai-PineBridge SSE STAR Board Semiconductor Materials & Equipment Theme ETF Feeder Fund (Class A: 024974 / Class C: 024975).
The index's composition, derived 100% from STAR Market stocks, may grant it significant elasticity, with its historical performance surpassing several mainstream peer indices. Over the past year, the index has delivered a cumulative return of 233%, outperforming indices such as the Semiconductor Materials & Equipment Theme Index (211%), the CSI All Share Semiconductor Index (143%), the Sci-Tech Innovation Chip Index (177%), and the National Chip Index (133%).
Investment Considerations for the Sector
The semiconductor equipment and materials sector is experiencing frequent industry catalysts, but investors should also be mindful of risks associated with high valuations and trading volatility. Valuations for the semiconductor equipment segment are already at historically elevated levels, following substantial short-term gains. Trading activity is relatively concentrated, and profit-taking or a shift in market sentiment could trigger significant price swings. Investors are advised to make rational judgments and exercise caution based on their individual risk tolerance.
As one of China's first ETF managers, Huatai-PineBridge Fund has over 19 years of experience in the index investment field. The company has developed a range of transparent, convenient, and low-cost index tools for investors, including 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 entire A-share market to achieve cumulative profits over two hundred billion yuan during that period.