The semiconductor equipment sector has pulled back, with the Guotai Semiconductor Equipment ETF (159516) falling over 3%. Driven by AI demand, the semiconductor industry is experiencing significant growth, and this pullback may present a buying opportunity

On March 31, the semiconductor equipment sector experienced a pullback, with the Guotai Semiconductor Equipment ETF (159516) falling over 3%. The demand for AI is driving significant growth in the semiconductor industry, which is expected to approach USD 1 trillion four years ahead of schedule. SEMI predicts that the global semiconductor industry growth rate could reach 23% by 2026. The simultaneous rise in both volume and price of memory is the main driver of industry growth, with price increases and supply shortages expected to continue. The heat around advanced packaging is increasing, with industry focus shifting to CoWoS and panel-level packaging. This ETF tracks the semiconductor material and equipment index, reflecting the market performance of the semiconductor supply chain