By the end of March 2026, the disclosure of 2025 annual reports for semiconductor companies listed on A-shares and Hong Kong stocks was nearly complete. Judging from the annual results released by major industry players such as SMIC, Hua Hong Company, and OmniVision Technologies, the sector is undergoing a structural recovery. Key trends include steady growth in manufacturing, significant divergence among design firms, leading equipment suppliers outperforming, and multiple niche segments showing strong momentum. Areas such as AI and memory have become core growth drivers, while the localization process continues to deepen.
Wafer foundry capacity is recovering, though profitability varies. As a core segment of the semiconductor supply chain, wafer foundries demonstrated overall stability in 2025, with capacity utilization rebounding and profitability improving. SMIC’s annual report released on March 26 showed that the company achieved annual revenue of RMB 67.323 billion, a year-on-year increase of 16.5%. Net profit attributable to shareholders reached RMB 5.041 billion, up 36.3% year-on-year, with a gross margin of 21.6%, an improvement of 3 percentage points. The company attributed the growth to recovering demand for mature process nodes and optimized product mix. Its monthly 8-inch equivalent wafer capacity exceeded 1 million units, with capacity utilization rising to 93.5%, an 8 percentage point increase year-on-year. Industry analysis suggests that SMIC’s performance benefited from both a global structural recovery in mature process demand and orders from domestic chip designers amid the localization wave. While expanding mature process capacity, the company has also shifted its product mix toward higher value-added segments, further boosting profitability.
Hua Hong Company reported 2025 revenue of RMB 17.291 billion, up 20.18% year-on-year, though net profit attributable to shareholders dipped slightly by 1.04% to RMB 377 million. Despite the minor profit fluctuation, the company’s capacity performance stood out. The Wuxi FAB9 facility ramped up quickly, with 12-inch wafer revenue accounting for 60% of total sales. Overall capacity utilization reached 106.1%, and operating cash flow surged 40.38% to RMB 5.065 billion, reflecting strong operational support. Industry insiders noted that the slight profit decline was mainly due to depreciation costs from the 12-inch production line ramp-up and increased R&D spending. However, the rising share of 12-inch revenue indicates the company is gradually reducing its reliance on mature processes and transitioning toward advanced foundry services. Over the long term, as 12-inch capacity utilization remains high, profitability is expected to recover steadily.
Jinghe Integrated reported 2025 revenue of RMB 10.885 billion, up 17.69% year-on-year, with net profit attributable to shareholders rising 32.16% to RMB 704 million. The company maintained a high capacity utilization rate and a comprehensive gross margin of 25.52%. Focused on 12-inch wafer foundry, Jinghe Integrated specializes in display driver integrated circuits while expanding into CIS and PMIC businesses, continuously optimizing its revenue structure. Technologically, the company has achieved mass production from 150nm to 40nm nodes, completed development of a 28nm logic process platform, and begun volume production of 55nm stacked CIS chips. It has also introduced automotive-grade products to leading automakers, building differentiated competitiveness in display and image sensor foundry services.
AI and automotive applications are driving strong growth among leading IC design firms, though the segment shows clear divergence. OmniVision Technologies announced on March 30 that its 2025 revenue reached RMB 28.855 billion, a 12.14% year-on-year increase, with net profit attributable to shareholders rising 21.73% to RMB 4.045 billion. The core growth driver was automotive CIS business, with image sensor revenue hitting RMB 21.246 billion, up 10.71% year-on-year. Automotive electronics and emerging markets were the main sources of growth. This performance reflects booming demand for automotive sensors driven by rising global adoption of new energy vehicles. Leveraging its technological expertise and customer relationships in automotive CIS, OmniVision has successfully captured market share. Benefiting from product upgrades, both average selling prices and gross margins improved, creating sustainable growth momentum.
VeriSilicon Microelectronics also delivered impressive results. Its 2025 annual report showed revenue of RMB 3.152 billion, up 35.77% year-on-year. Relying on its one-stop chip customization and IP licensing businesses, AI computing power emerged as a core growth driver, accounting for 64.43% of related revenue. New orders for the year surged 103.41% to RMB 5.96 billion, reflecting strong demand for advanced node design services. VeriSilicon’s high growth stems from its deep involvement in the AI computing sector. By leveraging synergies between chip customization and IP licensing, the company has effectively captured global demand for AI chip customization, with mass production services and advanced node orders experiencing explosive growth, making it a representative example of AI-driven growth in the IC design space.
The semiconductor equipment sector is accelerating localization, with leading companies achieving double-digit revenue and profit growth in 2025 thanks to technological breakthroughs and customer validation. Advanced Micro-Fabrication Equipment Inc. China, a leading domestic etching equipment supplier, released its 2025 annual report on March 30. The company reported annual revenue of RMB 12.385 billion, up 36.62% year-on-year, and net profit attributable to shareholders of RMB 2.111 billion, a 30.69% increase. Growth was driven by continued breakthroughs in etching equipment for advanced nodes and rising demand for MOCVD equipment in emerging applications. The report indicated that market share for core products has steadily increased, with the company now supplying global mainstream wafer fabs, further solidifying the localization trend.
Shengmei Shanghai maintained strong performance in wet process equipment such as cleaning and electroplating. The company’s 2025 revenue reached RMB 6.786 billion, up 20.8% year-on-year, while net profit attributable to shareholders rose 21.05% to RMB 1.396 billion. Benefiting from domestic wafer fab expansion and rapid growth in advanced packaging, the company’s wet process equipment orders remained robust, with gross margins staying at high levels, demonstrating strong market competitiveness and profitability.
Memory chips and third-generation semiconductors emerged as bright spots in niche segments, becoming new growth engines for the industry. High demand in these areas is driven by downstream emerging applications and deepening localization. GigaDevice Semiconductor’s annual report disclosed on March 31 showed 2025 revenue of RMB 9.203 billion, up 25.12% year-on-year, with net profit attributable to shareholders surging 49.47% to RMB 1.648 billion. Memory chip revenue accounted for RMB 6.566 billion, a 26.41% increase, with niche DRAM and SLC NAND achieving both volume and price growth. Automotive-grade Flash cumulative shipments exceeded 300 million units, and MCU business accelerated. Against the backdrop of improving supply-demand dynamics in the memory industry, GigaDevice capitalized on its strengths in niche memory to achieve volume and price increases. Breakthroughs in automotive-grade products have opened new growth avenues, highlighting the growing competitiveness of domestic IC design firms in specialized segments.
Biwin Storage Technology reported 2025 revenue of RMB 11.302 billion, a sharp increase of 68.81% year-on-year, while net profit attributable to shareholders skyrocketed 429.07% to RMB 853 million, setting new records since its listing. As a leading global supplier of AI-driven edge semiconductor storage solutions, the company generated approximately RMB 1.751 billion in revenue from AI edge storage products in 2025, with AI glasses storage products contributing RMB 960 million. The compound annual growth rate from 2023 to 2025 reached 378.09%, indicating that exploding demand for AI edge applications has become a core growth driver.
In the third-generation semiconductor sector, Tianyu Semiconductor’s annual results announcement on the Hong Kong Stock Exchange on March 30 revealed 2025 revenue of RMB 709 million, up 36.5% year-on-year. The net loss narrowed significantly by 87.6% to RMB 62.21 million. The improvement was attributed to strong sales growth in 6-inch and 8-inch SiC epitaxial wafers, combined with progress in raw material localization and optimized inventory management, which led to substantial cost reductions. The company achieved a gross profit of RMB 133 million for the year, with a gross margin of 18.8%, marking a fundamental turnaround from a gross loss in the previous year. Sustained demand from the new energy vehicle sector continues to drive SiC business growth.
However, it is important to note that performance varies significantly across different semiconductor sub-sectors. Preliminary earnings reports indicate that several companies in the semiconductor materials segment underperformed expectations, facing the challenge of increasing revenue without corresponding profit growth. The semiconductor materials industry is sensitive to fluctuations in upstream raw material prices and the pace of downstream wafer fab expansion. High R&D investment and lengthy capacity ramp-up cycles also pose challenges. Overall, driven by AI, the semiconductor industry shifted from broad-based fluctuations to structural growth in 2025. High-growth segments such as AI computing, automotive electronics, and memory chips are expected to continue leading industry expansion. Domestic semiconductor companies, through technological iteration and deeper market penetration, are accelerating efforts to achieve self-sufficiency in key areas.
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