Core Viewpoint - The semiconductor equipment and materials sector is gaining significant attention from investors due to rising chip prices and accelerated domestic substitution, leading to a surge in trading activity for related ETFs [1] Group 1: ETF Performance - The Kexin Semiconductor Equipment ETF (588710) recorded a trading volume of 388 million yuan on September 24, 2025, marking a 213% increase from the previous period, with a net inflow of 197 million yuan, both hitting historical highs since its inception on May 26, 2025 [1] - As of September 24, 2025, the Kexin Semiconductor Equipment ETF (588710) has a total share count of 394 million and a total size of 601 million yuan, reflecting a 254% increase in size since September 2025 [1] Group 2: Market Dynamics - The domestic semiconductor industry is witnessing accelerated progress in local substitution, with several leading tech companies entering chip development, including advancements in AI chips and significant progress in domestic lithography machines [1] - The semiconductor materials and equipment sector, being a critical upstream segment of the semiconductor supply chain, has a generally low domestic substitution rate, indicating potential for both performance and valuation improvements as self-sufficiency progresses and a potential order inflection point approaches in Q4 [1] Group 3: Index and Management - The Kexin Semiconductor Equipment ETF (588710) closely tracks the Shanghai Stock Exchange's Sci-Tech Innovation Board Semiconductor Materials and Equipment Index, focusing on the semiconductor equipment and materials sectors, which enhances its representation of critical segments in the semiconductor supply chain [1] - The fund manager, Huatai-PB Fund, is one of the first ETF managers in the domestic market with over 18 years of experience, having developed the largest ETF in the A-share market, the CSI 300 ETF (510300), and actively managing multiple ETFs focused on the Sci-Tech Innovation Board [1]

Group 1 - The A-share semiconductor sector is experiencing a strong rally, with the ChiNext Semiconductor Equipment ETF (588710) rising over 12% intraday, indicating active market trading [1] - The underlying index, the Shanghai Stock Exchange ChiNext Semiconductor Materials and Equipment Theme Index (950125), increased by 8.83%, with significant gains in constituent stocks such as ShenGong Co. (688233) up 20.01% and Jingyi Equipment (688652) up 13.89% [1] - Over the past week, the ChiNext Semiconductor Equipment ETF (588710) has accumulated a rise of 12.92%, with net inflows totaling 136 million yuan over three of the last five trading days [1] Group 2 - The storage market is witnessing a comprehensive price increase, with DRAM product contract prices expected to rise by 15%-20% quarter-on-quarter in Q3 2025, and NAND Flash product prices projected to increase by 5%-10% [1][2] - The demand for enterprise-level storage products such as eSSD and RDIMM remains high, suggesting a significant improvement in the performance of related storage industry chain companies [2] Group 3 - According to Huatai Securities, the semiconductor equipment market in China is expected to see a shift with "East Rising, West Declining," as global equipment company revenues grew by 24% year-on-year to $34 billion in Q2 2025 [3] - The overall semiconductor capital expenditure for 2025 is projected to increase by 14% to $148 billion, while the global equipment market is expected to grow by 12% to $142 billion [3] - The ChiNext Semiconductor Equipment ETF closely tracks the performance of the Shanghai Stock Exchange ChiNext Semiconductor Materials and Equipment Theme Index, which includes companies involved in semiconductor materials and equipment [3][4] Group 4 - As of August 29, 2025, the top ten weighted stocks in the ChiNext Semiconductor Materials and Equipment Theme Index (950125) account for 71.5% of the index, including companies like Huahai Qingke (688120) and Zhongwei Company (688012) [4]