Core Insights - The manufacturing PMI in May increased by 0.5% to 49.5%, with high-tech manufacturing PMI remaining above the threshold for four consecutive months at 50.9%, indicating a positive development trend in high-end manufacturing sectors such as electronics and semiconductors [1] - The semiconductor equipment sector is driven by demand growth in automotive electronics, new energy, and the Internet of Things, fueled by new technologies like AI, while the domestic wafer manufacturing and supporting industries are accelerating their development [1] - Emerging technologies such as solid-state batteries are expected to create growth opportunities for lithium battery equipment, with 2025 being a critical year for commercialization, leading to comprehensive updates and significant value increases in equipment [1] - The semiconductor industry is currently experiencing two major trends: increased demand for computing power driven by AI leading to technological upgrades, and heightened urgency for supply chain self-sufficiency amid trade frictions, supported by increased policy backing [1] - Analysts recommend focusing on domestic semiconductor equipment replacement chains and leading companies in new technology layouts [1] Industry Overview - The Integrated Circuit ETF (159546) tracks the Integrated Circuit Index (932087), which is compiled by China Securities Index Co., Ltd., selecting listed companies involved in core aspects of integrated circuit design, manufacturing, and packaging testing from the Shanghai and Shenzhen markets [1] - This index exhibits significant industry concentration and technological advantages, effectively reflecting the development level of China's integrated circuit industry chain [1]