On May 19, semiconductor equipment and CPU sectors surged in the afternoon, with Cambricon rising 8.40%, Liangwei Micro hitting the daily limit, and AMEC soaring 9.29%. Zhongke Feic, Jianghua Micro, and Yuyuan Silicon all increased by over 8%, with multiple equipment stocks reaching new highs since their listing.
In terms of ETFs, the Semiconductor Equipment ETF China Merchants (561980), which has significant holdings in the above stocks, surged 6.06% in a single day, topping the market's semiconductor ETFs in terms of daily increase. The fund's net value has set new highs 17 times this year, with the underlying index rising 56% year-to-date.
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On the news front, Yangtze Memory Technologies recently released its IPO guidance filing, and Changxin Technology updated its prospectus for the STAR Market. According to Omdia, Changxin has become the largest DRAM manufacturer in China and the fourth largest globally, with a net profit attributable to the parent company of 24.762 billion yuan in the first quarter, a year-on-year increase of 1688%.
Memory chips are a barometer of the semiconductor cycle. WSTS data shows that the global memory chip market is expected to reach approximately $230 billion by 2025, accounting for 33% of the integrated circuit market. Driven by AI, demand for HBM and DDR5 is exploding, leading the storage industry into a new round of capacity expansion and technological upgrade cycles.
Capacity expansion primarily benefits upstream equipment and materials. China Merchants Securities pointed out that SEMI expects the global semiconductor equipment market's growth to continue until 2029, driven by advanced processes, DRAM, HBM, and NAND. If the IPOs of the two companies proceed smoothly, the certainty of future capacity expansion is very strong, with equipment orders continuing to improve and the materials sector also expected to see large-scale growth.
Another direction continuously priced by the market is CPU. Global CSPs (Cloud Service Providers) are expected to have a total capital expenditure of approximately $830 billion by 2026, driving the prosperity of the AI industry chain. Overseas CPU manufacturers have their capacities locked until the end of 2026, with price increases of 10%-15%, and the window for domestic substitution is opening.
Cambricon and Haiguang Information reported growths of 185% and 36% respectively in their first-quarter reports. The CSI Semiconductor Index has included these two CPU leaders and given them high weight, allowing the index to have exposure in both &#34;equipment expansion&#34; and &#34;computing power breakthroughs.&#34; It is also one of the few indices in the A-share market that covers 100% of the four core chip industry chains: equipment, materials, design, and manufacturing.
Data shows that as of May 19, the CSI Semiconductor Index has cumulatively risen 416% since 2020, ranking first among chip-themed indices such as those for sci-tech chips and semiconductor materials and equipment. In the current triple resonance of storage expansion + computing power demand + domestic substitution, with significant holdings in equipment, materials, and CPUs, the positioning of the CSI Semiconductor Index should be in the most beneficial position

688012

688256

561980

512760

159325

588170

On May 19th, semiconductor equipment and CPU stocks surged significantly, with Cambricon rising 8.40% and AMEC increasing 9.29%. Several equipment stocks reached new highs since their listing, and the semiconductor equipment ETF China Merchants rose 6.06%. Yangtze Memory Technologies released its IPO guidance report, and Changxin Technology updated its prospectus, expecting the global semiconductor equipment market to continue growing until 2029. Driven by AI, the storage industry has entered a phase of expansion and technological upgrades, and the CPU market is also developing rapidly

同壁财经

AMEC

Cambricon

China Merchants CSI Semiconductor Industry ETF

Guotai CES Semiconductor Chip Industry ETF

China Southern CSI Semiconductor Industry Custom ETF

ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF

LION

Skyverse

GRITEK

CMSC

Hygon Information Technology

Cambricon surged 8%, AMEC stock price reached a new high, why did CPU and semiconductor equipment rise today?