The technology sector is in a pullback window; the layout logic of the semiconductor track and the value of Guotai's innovation chip ETF tools.

Is the AI and technology sector correction a new investment opportunity in semiconductors?

Recently, the technology sector has experienced a correction. As of March 13, 2026, the Guotai Science and Innovation Chip ETF (589100) closed at 1.586 yuan, down from its previous high. Investors are beginning to worry: is this a trend reversal or a window for strategic positioning?

This correction mainly stems from overseas market sentiment disturbances, phased capital rotation within the market, and short-term pressure from profit-taking, rather than a fundamental shift in the industry. For the semiconductor sector, the two core logic drivers—the long-term strategic focus on domestic chip replacement and the demand surge driven by AI computing power—remain unchanged. In fact, the correction provides a safer window for investors to strategically allocate.

Unlike mainboard stocks, the stocks tracking the Shanghai STAR Market Chip Index (000685) have a 20% fluctuation mechanism, offering stronger performance resilience and explosive growth potential during industry cyclical reversals. Historical data shows that during the semiconductor industry recovery phase, the Shanghai STAR Market Chip Index (000685) recorded a maximum monthly increase of 35.24%, far surpassing similar mainboard indices. This means that phased deployment during the correction allows investors to better capture excess returns when industry conditions improve and the sector rebounds.

From a valuation perspective, after this correction, the Shanghai STAR Market Chip Index (000685) has retreated from its previous high, but its long-term performance remains strong, with a cumulative increase of 181.67% since inception. Although current sector valuations are relatively high historically, the ongoing explosion in AI computing demand and accelerated domestic substitution are expected to gradually ease valuation pressures through high growth.

For ordinary investors, allocating to the semiconductor sector via index ETFs is more suitable than investing in individual stocks. The semiconductor industry features rapid technological iteration and significant stock differentiation. Single companies face risks such as technological failure, customer loss, and earnings shocks, which can lead to a “sector rise, individual stock fall” dilemma. The Guotai Science and Innovation Chip ETF (589100) diversifies risk through a basket of holdings, with an annual management fee of only 0.50%, much lower than active equity funds, significantly reducing long-term holding costs. It also offers a one-click allocation, saving investors from extensive research on individual stocks and niche segments.

As a core tool for sector allocation, the Guotai Science and Innovation Chip ETF (589100) closely tracks the Shanghai STAR Market Chip Index (000685), with holdings covering five key segments: chip design, wafer manufacturing, semiconductor equipment, core materials, and packaging/testing. The top ten holdings include leading domestic chip companies such as SMIC, Microchip, and HiSilicon, capturing the full industry chain’s cyclical recovery, domestic substitution, and AI computing power themes, providing a comprehensive upside opportunity. It is an essential tool for ordinary investors to seize the semiconductor correction and strategic deployment window.

The Guotai Science and Innovation Chip ETF (589100) enables one-click exposure to the entire domestic “core” chip industry, bundling leading companies across the full industry chain and categories.

Risk Reminder:

This article provides an objective industry analysis and does not constitute any investment advice, trading recommendation, or operational guidance. Investors should carefully read the fund’s legal documents, such as the fund contract and prospectus, to fully understand the fund’s risk-return characteristics and make prudent decisions based on their own risk tolerance.