---
title: "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"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/281135722.md"
description: "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"
datetime: "2026-03-31T06:28:09.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/281135722.md)
  - [en](https://longbridge.com/en/news/281135722.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/281135722.md)
---

# 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 driven by AI is expected to lead to significant growth in the semiconductor industry, and this pullback may present a buying opportunity.

Huatai Securities pointed out that the demand from AI could drive the semiconductor industry's scale to approach $1 trillion four years earlier than expected. 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 the industry's better-than-expected growth. Unless there is a significant decline in consumer electronics demand, price increases and supply shortages are likely to persist throughout the year. The heat around advanced packaging has significantly increased, with the industry's focus shifting from advanced processes to CoWoS and panel-level packaging (PLP). Testing and backend equipment are expected to undergo a revaluation; China's advanced packaging layout has entered a phase of "wafer fab replacement + OSAT expansion + equipment localization" in a tripartite collaborative stage.

The Guotai Semiconductor Equipment ETF (159516) tracks the semiconductor materials and equipment index (931743), which focuses on the materials and equipment segments within the semiconductor industry chain. The constituent stocks mainly include companies engaged in the production, processing, and manufacturing of semiconductor materials and related equipment. This index reflects the market performance and technological innovation trends in the upstream sectors of the semiconductor industry and is one of the important indicators for measuring the development of the semiconductor industry.

Daily Economic News

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