--- title: "Although the semiconductor equipment market is highly volatile, it is indeed prosperous. Here are two practical trading strategies" type: "News" locale: "en" url: "https://longbridge.com/en/news/288796885.md" description: "The semiconductor equipment sector, although volatile, has a high level of prosperity, making it suitable to reduce holding costs through trading. It is recommended to buy and sell in batches based on the fluctuations of ETFs, or to extend the time dimension to increase the operational threshold. Changxin Storage's new round of domestic equipment bidding and orders from NAURA and AMEC are scheduled until 2027, indicating that the industry's upward cycle is expected to continue for more than a year and a half" datetime: "2026-06-05T02:25:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288796885.md) - [en](https://longbridge.com/en/news/288796885.md) - [zh-HK](https://longbridge.com/zh-HK/news/288796885.md) --- # Although the semiconductor equipment market is highly volatile, it is indeed prosperous. Here are two practical trading strategies There is a line in "Empresses in the Palace": "Although Noble Lady Qi is foolish, she is indeed beautiful." This vividly describes the current semiconductor equipment: the fluctuations are significant, yet it is indeed in a high boom and high certainty. After three consecutive days of nearly 8 points increase, the Semiconductor Equipment ETF Zhaoshang (561980) opened today down 2.5%, ending the streak of gains, still 50 cents away from the previous high. Among the constituent stocks, only China Shipbuilding Special Gas stands out, continuing to reach new highs today after being locked yesterday, confirming the trend. So how should we approach this sector now? Based on the characteristics of high volatility and high prosperity and growth in the sector, doing T to lower costs is the optimal choice. How to do T? Taking the Semiconductor Equipment ETF Zhaoshang (561980) as an example, if you already have a position, sell a small amount every time it rises by 2%-5%, and sell a larger amount if it rises over 5%; conversely, buy back a small amount if it falls by 2%-5%, and buy back a larger amount if it falls over 5%. After doing this for a while, you will find that your holding cost keeps decreasing. According to the long-term trend of its underlying index, the CSI Semiconductor, your profit certainty is very high. However, due to the large fluctuations in the sector, with daily amplitudes often several points, this requires a certain rhythm for intraday T operations. Is there a way to do T with fewer operations? Of course, there is. Extend the time dimension and raise your threshold, increasing the operation points to 5%-10%. Alternatively, you can simply build a small position and gradually increase it based on pullbacks until you reach your position limit or profit target. However, both methods have a common condition: one is to withstand pullbacks without frequently cutting losses and to maintain a stable mindset without taking profits too early; the other is to complete operations within this round of the semiconductor equipment upward cycle. This is because the stock price uptrend in the semiconductor sector generally ends before the industrial cycle, while semiconductor equipment benefits from the essential demand for selling shovels, which will be extended for a period of time, with the specific duration depending mainly on the order volume of major equipment and material manufacturers. **【Time and Space for Continued Rise of Semiconductor Equipment】** According to the latest news from the forefront of technology, Changxin Storage has initiated a new round of equipment bidding in the second quarter, with an annual equipment procurement budget of 5 to 6 billion USD, prioritizing the procurement of domestic equipment. This news has pushed the production lines of NAURA and AMEC directly to 2027. Therefore, the time for semiconductor equipment to perform still exceeds one and a half years. In terms of space, on June 2, UBS released a research report significantly raising the target prices for NAURA, AMEC, and Shengmei Shanghai, with increases of 34%-48%. This is a very clear signal. Currently, Changxin plans to add 50,000 to 60,000 wafers of production capacity by 2026. According to the equipment investment ratio for memory chip production lines, the corresponding equipment procurement amount reaches 5 to 6 billion USD. More importantly, this bidding clearly establishes a principle—prioritizing the procurement of domestic equipment In the past, these multi-billion dollar orders primarily flowed to American Applied Materials, Lam Research, and Japan's Tokyo Electron. Now, domestic equipment has gained priority. Changxin's IPO fundraising scale is 29.5 billion yuan, of which 22 billion yuan is specifically used for equipment procurement and installation, meaning that the money raised from the capital market is directly invested in equipment purchases, with a very high certainty of orders. In terms of individual stocks: NAURA is the biggest beneficiary of Changxin's equipment procurement. By 2025, revenue from etching equipment and film deposition equipment will both exceed 10 billion yuan, with PVD and vertical furnace deliveries each surpassing 1,000 units. AMEC has the deepest binding with Changxin, with over 300 ultra-high aspect ratio etching machines already in mass production on storage production lines. For Changxin, the next generation of low-temperature etching equipment achieves an aspect ratio of 90:1, and the second generation ICP etching equipment achieves an etching result of 140:1 in 3D DRAM applications, with technical indicators that can compete directly with Lam Research. However, Huazi is too expensive, and AMEC's 20cm threshold is high. Using ETFs for trading is cheaper and more convenient. For example, the semiconductor equipment ETF from China Merchants (561980) has a combined weight of over 27% for the two companies. This ETF has one major difference from its peers: it has allocated about 20% to Cambrian, SMIC, and Haiguang Information, benefiting a wider range and offering greater flexibility. 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