China’s chip industry surges in 1H25 — 38 A-share listed firms reportedly post growth

According to Shanghai Securities News, China’s chip industry is reportedly seeing growth driven by AI. The report notes that among 102 A-share listed companies engaged in digital chip design, analog chip design, integrated circuit manufacturing, and IC packaging and testing, 66 posted profits in the first half of the year.

Of these, 38 recorded year-on-year net profit growth, seven turned losses into gains, and another 15 narrowed their losses, as per the report.

As the report highlights, companies such as Cambricon, Halo Microelectronics, TWSC (Shenzhen Techwinsemi Technology Co.), and 3PEAK ranked among the top in revenue growth.

Cambricon and Hygon shine as AI fuels chip design growth
High-end computing chips have been major beneficiaries of the AI boom, with Cambricon standing out as a leading example. The report notes that in the first half of the year, Cambricon posted revenue of RMB 2.881 billion, up 4,347.82% year-on-year, while net profit attributable to shareholders and net profit excluding non-recurring items both swung to profit, reaching RMB 1.038 billion and RMB 913 million, respectively.

Chinese server CPU makers are also riding the AI wave. As the report indicates, in the first half of the year, Hygon generated RMB 5.464 billion in revenue, up 45%, with net profit rising 41% to RMB 1.201 billion and adjusted net profit climbing 33% to RMB 1.09 billion.

Meanwhile, the report also mentions that surging demand for edge applications is fueling growth for edge AI chipmakers. For instance, 3PEAK has expanded steadily across automotive, AI servers, communications, and home appliances, with revenue rising for five consecutive quarters.

China’s top foundries deliver robust results and high utilization
The report also points out that in the first half of the year, China’s two largest foundries, SMIC and Hua Hong, both delivered strong growth. According to Commercial Times, SMIC delivered a strong performance in the first half of 2025, with revenue reaching US$4.456 billion, up 22% year-on-year. Net profit attributable to shareholders came to US$321 million, a 35.6% increase from a year earlier.

Hua Hong also reported impressive results, with first-half revenue of US$1.107 billion, up 18% year-on-year, and a gross margin of 10.1%, an improvement of 1.6 percentage points, as indicated by Shanghai Securities News.

At the same time as revenue and profit growth, the two foundries also saw a significant rise in capacity utilization, as Shanghai Securities News points out. Hua Hong’s capacity utilization reached 108.3% in the second quarter, marking its highest level in recent quarters.

According to TrendForce, in the 2Q25 foundry market share rankings, SMIC placed third with its share slipping to 5.1% from 6.0% in Q1, while HuaHong Group held sixth with a 2.5% share.

In addition,  Shanghai Securities News also notes that China’s downstream chip packaging and testing segment is likewise showing an improving trend. In the first half of the year, China’s leading chip-packaging company JCET recorded revenue of RMB 18.605 billion, up 20.14% year-on-year.

Source: TrendForce, Taiwan.