The process of localization accelerates the recovery of the superimposed economy, and the prospect of the semiconductor industry is promising.

The national policy has been strengthened, and the strategic position of the semiconductor industry has been highlighted. Every link of the semiconductor industry chain has a certain threshold, which requires continuous capital and talent investment. Policy support is of great significance to the development of the semiconductor industry. In recent years, China's semiconductor industry has been highly valued by governments at all levels and supported by the national industrial policy.

There is a broad space for localization of the core link of the semiconductor industry chain. Although domestic semiconductor manufacturers have made some breakthroughs in many fields, the localization rate of many core links is still low, such as semiconductor equipment, which also means that the incremental space brought by localization is broad.

It is highly related to the economic cycle and is currently at the bottom of the cycle, waiting for the economy to recover. The worst of macroeconomic feeling is over, and the stabilization of the economy in the second half of the year is expected to lead to a reversal at the bottom of the semiconductor cycle. Looking forward to the second half of the year, the prosperity of semiconductors at home and abroad is expected to recover with demand recovery and inventory bottoming out.

Demand maintains high growth, and AI innovation brings new increments. In the past few years, thanks to the increasing demand for chips in downstream 5G, new energy vehicles, high-performance computing and other segments, the semiconductor industry market continues to hit new highs.

At present, a new round of global scientific and technological innovation cycle has been launched, and the new momentum represented by artificial intelligence is expected to become the core growth level of semiconductor demand.

The CSI all Semiconductor products and equipment Index (H30184.CSI) was released on July 15, 2013 to reflect the overall performance of the semiconductor products and equipment sector.

Index performance: long-term performance is excellent, income risk is relatively high. The cumulative income of the CSI semiconductor products and equipment index since the base date has exceeded the Shanghai and Shenzhen 300, CSI 500, Wandequan An and other mainstream wide-base indices.

Active trading in the index, recent liquidity has increased significantly: the index since 2022, the quarterly average daily turnover has exceeded 25 billion yuan. The index is full of liquidity and can accommodate large-scale funds.

Market capitalization distribution: focus on small and medium-sized market style.

Industry distribution: deep coverage of semiconductor products and equipment plate.

Distribution of individual stocks: heavy positions cover chip design and semiconductor equipment leading companies. The top ten heavy stocks account for 44.94% of the total, and most of them are leading companies with cutting-edge technology in China's semiconductor industry.

Valuation level: index price-to-earnings ratio and price-to-book ratio are in the middle level in history, with a certain allocation performance-to-price ratio.

Index characteristics: the overall profitability of constituent stocks is excellent. The overall gross profit margin of index stocks is significantly higher than the mainstream wide-base indexes such as CSI 300, CSI 500 and Wandequan A.

Semiconductor ETF (512480) tracks the CSI semiconductor products and equipment index, which was established on May 8, 2019 to provide investors with investment tools for the layout of the semiconductor industry.

Product performance: closely track the target index, tracking error is small.

Fund managers: fund managers Huang Xin and Zhang Shuyuan have rich experience in index product management, with a product management scale of more than 30 billion yuan.

Risk hint: the performance of the sector does not meet the expected risk; the fund is a stock fund with a high level of expected risk and return; the index and the historical performance of the fund do not represent the future.