China's "core" steadily advancing globally: Semiconductor industry sees double growth in revenue and profit

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Recently, major core semiconductor products such as global memory chips and MCUs have entered a new round of price-hike wave. Cost pressure has gradually been transmitted to end-consumer markets. Under the impact of multiple factors—including a surge in demand for AI computing power and geopolitical issues—sentiment in the semiconductor industry chain is expected to continue to rebound.

Revenue and net profit accelerate in growth

According to statistics from The Securities Times·Data Bao, as of now, relevant data related to 2025 net profits (taking the lower bound of performance forecast data; the same applies below) for 173 A-share semiconductor companies have basically been disclosed, and only 8 companies have not yet released their annual reports or performance forecasts.

Overall, among the 165 semiconductor companies that have disclosed net profit, 115 recorded profits in 2025, accounting for nearly 70%, slightly surpassing the 2024 level.

Looking back historically, in 2024, semiconductor companies’ revenue increased year over year by 21.44%, and net profit increased year over year by 15.42%. In 2025, semiconductor companies’ revenue grew year over year (comparable basis) by nearly 24%, and net profit grew year over year by 29.23%. Both the growth in revenue and net profit increased versus the previous year, indicating that industry growth is accelerating.

Continuously improving performance from listed companies is a snapshot of the semiconductor industry’s shift from a slump to recovery. After the low periods of 2022 and 2023, since 2024, the semiconductor industry has seen a strong rebound, and in 2025 it has accelerated further in growth.

At the 2026 Shanghai International Semiconductor Exhibition recently held, a positive signal has also been conveyed: with AI-driven memory expansion, advanced logic process ramping up in volume, and a breakout in demand for advanced packaging, the semiconductor equipment industry has entered a high-growth inflection point. Meanwhile, domestic equipment is gaining traction across multiple links; leading platform-type companies continue to refine their deployments. 2026–2027 will become a key period for a significant increase in localization rates.

Net profits of 46 companies reach multi-year highs

From the perspective of individual companies, 46 semiconductor companies’ net profits in 2025 hit the highest level since 2019. Among them, 14 companies have net profit scale exceeding 1 billion yuan, including Hygon Information, TrendForce Technology, Micron Technology, and Cambricon, all exceeding 2 billion yuan.

In 2025, Hygon Information’s net profit reached 2.54B yuan, up 31.66% year over year. The company expects net profit in the first quarter of this year to grow 22.56% to 42.32% year over year. According to Soochow Securities, Hygon Information has two major domestic leading products: CPU and DCU. As the industry’s innovation in information technology proceeds steadily, the company’s CPU product revenue will grow steadily. The company’s DCU product performance position is in the first echelon, with new products continuously iterating. The sustained high growth in performance verifies the industry’s favorable outlook.

In 2025, TrendForce Technology’s net profit grew more than 58% year over year. The main beneficiary is the AI industry trend. With strong industry demand, the company’s interconnect-type chip shipments increased significantly, driving a substantial year-on-year increase in the company’s operating performance for 2025 versus the same period last year.

In 2025, Cambricon’s net profit reached 2.06B yuan, the first time it achieved profitability since listing. During the reporting period, benefiting from the ongoing rise in AI industry demand for computing power, the company leveraged its excellent competitive product advantages to continue expanding the market and actively promote the rollout of AI application scenarios.

It is worth noting that among the above 14 companies, 7 saw net profit first exceed 1 billion yuan. In addition to Cambricon, there are also S~Micro Electronics, Zke BlueS, Changchuan Technology (rights protection), Tongfu Microelectronics, and more.

Semiconductor companies accelerate going overseas

In recent years, the global semiconductor supply chain has experienced significant fluctuations—from the initial “chip shortage wave” to later inventory adjustments as the market warmed up. Against this backdrop, China’s “chips” have been accelerating the pace of independent, controllable development. Related products have gradually gained recognition from global customers, demonstrating strong resilience and vitality.

According to customs data, in the first two months of this year, China’s integrated circuit (chip) exports reached $43.3 billion, up 72.6% year over year. The growth rate is far higher than the overall export growth rate of 21.8% in the same period, and it has also set a new high in recent years.

Semiconductor industry companies are speeding up their overseas expansion. According to Data Bao statistics, currently, among the 59 A-share semiconductor companies that have disclosed overseas business revenue, total overseas business revenue in 2025 exceeded RMB 101.8 billion, up nearly 23%, which is more than 6 percentage points higher than the previous year.

Among these 59 companies, the proportion of companies whose overseas business revenue grew year over year in 2025 is close to 80%. 18 companies have overseas business revenue exceeding RMB 1 billion, and all increased versus the previous year. De Mingli, SmartSens-W, Longi Storage, and TrendForce Technology’s overseas business revenue growth in 2025 all exceeded 50%.

De Mingli’s overseas business revenue in 2025 was RMB 6.91B, up nearly 108% from the previous year. The company said it was mainly due to factors including foreign-exchange settlement, logistical convenience, trading habits, and taxation.

16 concept stocks post strong performance with deeper-than-market declines

Judging from market performance, in 2025 the semiconductor sector performed strongly. The Shenwan semiconductor industry index’s cumulative gain was close to 46%, ranking among the top across industries. Since this year began, the index has fallen back. As of April 3, the Shenwan semiconductor industry index had dipped slightly by 0.85%. Many companies within the sector saw sharp pullbacks in their stock prices, including multiple high-quality stocks.

According to Data Bao statistics, this year there were 16 semiconductor stocks that had a stock price drop of more than 5% and underperformed the semiconductor industry index in 2025; meanwhile they achieved profitability in 2025 and had net profit year-on-year growth of more than 30%.

Ranked by market performance, there are 11 stocks with a decline exceeding 10% since 2026, including SMIC International, Allwinner Technology, GigaDevice, and Jilin Hua Microelectronics, among others.

In 2025, SMIC International’s gain was below 30%, and its decline since the beginning of this year has exceeded 25%. The company stated that its 2025 capital expenditures were $8.1 billion. Its 2026 capital expenditures are expected to be broadly flat compared with 2025, and corresponding capacity will also increase gradually in the subsequent period.

In 2025, Jilin Hua Microelectronics’ gain was below 10%, and its decline since the beginning of this year is close to 13%. Since 2024, the company’s performance has returned to a correct track. In that year, it achieved net profit of RMB 220 million, and the 2025 net profit lower bound is RMB 330 million, up more than 50% year over year. The company’s subsidiaries—Jilin Hua Integrated’s 5/6-inch chip production lines, Jilin Hua Xing’s 8-inch chip production lines, and its important equity-invested enterprise Jilin Hua Keji’s 12-inch chip production lines—all achieved full-capacity production.

From research survey results, there are 8 stocks this year that have received investigation by 10 or more institutions. Loongson Technology and SmartSens-W have both received more than 100 institutional visits; Goodix Technology, Synaptics Union, and Chipown Microelectronics have all received more than 20 institutional visits.

（The data in this issue is provided by the Securities Times Center database）

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