NewTimeSpace — 26 Jan, 10:32 am: A-share semiconductor-equipment names crater at midday. Toone Technology hits limit-down, while Huafeng Test & Control, Changchuan Technology, Lihexing, Piotech and Kinyu Micro all sink >5%.

Global X China Semiconductor ETF(03191.HK) — the only Hong Kong-listed ETF dedicated to the entire mainland-chip supply chain — is off more than 4%, trimming its 2026 gain to about 20%. The fund, launched by Global X’s Korean desk, tracks the Solactive China Semiconductor Net Total Return Index with 100% on-shore exposure. Top-ten holdings include NAURA, SMIC, Montage, AMEC and Guoxin Micro, covering wa-fab, equipment, materials and EDA with no consumer-electronics dilution.

Micron says global memory shortages intensified last quarter and will persist “well beyond 2026.” PC and smartphone OEMs are now scrambling to lock in 2027-28 supply, as AI infrastructure demand explodes.

Domestic substitution is accelerating: China’s semiconductor-equipment localization rate has risen from 25% in early 2025 to 35%, with etch and thin-film tools topping 40%. Mass production of 300 mm wafers and ArF photoresist is underway; Shanghai Silicon’s 300 mm polished wafers for memory now account for 60% of shipments. Policy tail-winds plus geopolitical insulation leave plenty of market-share runway for local vendors — a long-term narrative that dip-buyers are using to keep their accumulation plans intact despite today’s shake-out.

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