What are the recent positive developments in the chip industry? Tianhe Innovation Chip Design ETF (589070) has active trading volumes, presenting a buying opportunity on pullbacks.

In the market, both major exchanges surged then pulled back, with chip design concepts declining. Regarding related ETFs, the Sci-Tech Innovation Chip Design ETF Tianhong (589070) index fell 1.08% intraday, with a trading volume of 33.73 million yuan; turnover rate reached 5.64%. Among its constituents, Dongxin Co. dropped over 5%, with Nanxinwei, Shengke Communications-U, Jiewate, and others also declining.

Notably, Wind data shows that the Sci-Tech Innovation Chip Design ETF Tianhong (589070) has been continuously attracting funds over the past two trading days (March 11–12, 2026), with a total net inflow of 32.37 million yuan in the last 30 trading days. As of March 12, 2026, the fund’s latest size was 604 million yuan, representing a growth of 604 million yuan since the beginning of the year, ranking first among similar funds.

The ETF Tianhong (589070) precisely targets three high-growth segments: cloud training chips, edge inference chips, and domestically produced GPUs, aligning perfectly with industry trends of AI computing power explosion and domestic substitution. Data shows that 68% of AI chip design market growth and a 12% share of the domestic GPU market provide solid performance support for the product; meanwhile, a reasonable valuation of 40–45 times and sector synergy advantages balance high volatility risks of 35–45%. For investors optimistic about the long-term development of the semiconductor design sector, the Sci-Tech Innovation Chip Design ETF Tianhong (589070) is an efficient tool for capturing segment-specific dividends.

On the news front, the chip design sector has recently been boosted by multiple industry favorable factors. First, according to Wanlian Securities, storage chip prices have risen significantly. TrendForce data indicates that in Q1, DRAM contract prices are expected to increase by over 90% quarter-on-quarter, and NAND Flash prices have also surged, directly benefiting related design companies. Meanwhile, Caixin reports that the price increase trend across the entire semiconductor industry chain has extended to the chip design segment, with many companies raising product prices due to rising raw material costs and supply-demand tensions.

Second, the pace of domestic substitution accelerates. Guotou Securities research reports that external technological restrictions continue to exert pressure, further emphasizing the urgency of domestic self-control, bringing policy and order support to local chip design companies.

Third, leading companies’ performance provides strong confirmation. Caixin reports that companies like Beiwei Storage have announced net profit data for the first two months far exceeding market expectations, demonstrating robust industry profitability. Additionally, NVIDIA’s GTC conference is upcoming, injecting positive expectations into the AI computing industry chain.

Chuangtou Securities emphasizes that NVIDIA maintains generational leadership by annually updating its full-stack CPU/GPU/DPU product lines. The GTC conference will showcase a three-layer computing architecture optimized for different inference stages, with chip design evolving from general-purpose to scene-specific customization.