The 2025 performance forecasts for integrated circuit companies listed on the Star Market have recently concluded, with companies like ACM Research and Prisemi releasing their annual reports ahead of schedule, showing impressive results. Driven by artificial intelligence demand, a recovery in consumer electronics, and accelerated localization, the integrated circuit industry continues to experience robust growth.
Statistics indicate that the 128 integrated circuit firms on the Star Market are projected to achieve total revenue of 365.112 billion yuan, a 25% year-on-year increase, and a net profit attributable to shareholders of 27.929 billion yuan, surging 83% compared to the previous year. The chip design segment led all sub-sectors with a remarkable net profit growth of 268%. Among these 128 companies, over 80% are expected to report higher revenue year-on-year, 60% forecast increased net profits, and 12 firms have turned losses into profits.
Net profit for 76 chip design companies surged by more than 260%.
In 2025, breakthroughs in artificial intelligence technology and the rapid commercialization of AI applications led to a surge in computing power demand. Coupled with accelerated localization efforts, sub-sectors such as computing chips, memory, and optical chips demonstrated significant performance breakthroughs. According to performance forecast data, the 76 chip design (including IDM) companies on the Star Market are expected to achieve combined revenue of 163.103 billion yuan, up 32% year-on-year, and a combined net profit of 13.7 billion yuan, skyrocketing 268% compared to the previous year.
Within the computing chip sector, companies like Cambricon, Moore Threads, and MetaX achieved record-high revenues of 6.497 billion yuan, 1.506 billion yuan, and 1.644 billion yuan, respectively. Cambricon reported its first annual profit, reaching 2.059 billion yuan, while Moore Threads and MetaX significantly reduced their losses by over 30%.
Simultaneously, the rapid development of the AIoT market, particularly the proliferation of edge AI in applications like smart homes, automotive, and wearables, fueled substantial growth for consumer chip product companies. CMOS image sensor manufacturer Smartsens and smart audio SoC provider Actions Technology saw revenue increases of 51% and 42%, respectively, with net profits soaring 155% and 92%.
The explosion in AI computing demand, combined with structural adjustments on the supply side and low industry inventory levels, propelled memory chips into a "super cycle." Montage Technology is projected to achieve a net profit of 2.236 billion yuan in 2025, a 58% year-on-year increase, as demand for high-performance interconnect chips rose significantly, directly boosting the company's shipment volume and revenue. Biwin Storage, actively expanding its global key client base, is expected to report a net profit of 867 million yuan, a five-fold increase year-on-year, with its operational performance continuing its explosive growth into the first two months of 2026.
Furthermore, high-speed optical modules, serving as the "data transmission highways" for AI computing power, have become core necessities in the computing era. Influenced by this trend, five optical chip companies, represented by Shijia Photon and Sanan Integrated, achieved combined annual revenue of 4.619 billion yuan, a 62% year-on-year increase. Their fourth-quarter 2025 revenue reached 1.326 billion yuan, up 10% sequentially. For the full year 2025, their combined net profit was 713 million yuan, surging 419% year-on-year, demonstrating clear characteristics of growth in both volume and profitability.
Domestic semiconductor manufacturing and supporting industrial chains advance to a new stage.
The 2026 Government Work Report explicitly emphasized the urgent need to cultivate and strengthen new growth drivers, placing the integrated circuit industry at the forefront of emerging pillar industries. Focusing on accelerating high-level self-reliance in science and technology, the report outlined work deployments such as "leveraging the advantages of the new nationwide system to advance breakthroughs in key core technologies across the entire chain," providing direction and a confidence boost for enhancing the quality and efficiency of the integrated circuit industry.
In recent years, supported by global supply chain restructuring trends and Chinese government policies covering industry, talent, and taxation, domestic semiconductor manufacturing and supporting industrial chains have accelerated their transition towards a new phase characterized by scale and high-end development. In the wafer manufacturing segment, SMIC, as a key "chain leader" enterprise, directly benefited from supply chain localization, achieving record annual revenue of 67.323 billion yuan. Its net profit reached 5.041 billion yuan, a 36% year-on-year increase, with capacity utilization maintained at a high level of 93.5%. Hua Hong Company achieved a capacity utilization rate of 106.1%, with significant contributions from analog chip and memory revenue.
Breakthroughs were also seen in the semiconductor equipment sector. Companies like AMEC and Piotech reported net profit growth exceeding 20%, while Skyverse Technology turned losses into profits. Domestic front-end equipment continued to secure orders amid capacity expansion for advanced memory and logic processes. In the packaging and testing field, WeTest Technology, a leading third-party independent chip testing company in China, saw increased revenue from high-end testing services. Its full-year revenue grew 46% year-on-year, with net profit surging 134%.
Full capacity utilization and technological iteration on the manufacturing end, combined with recovering downstream demand and healthier inventory levels, jointly propelled simultaneous volume and price increases across various segments of the domestic industrial chain. Since the beginning of 2026, several Star Market chip design firms, including China Resources Microelectronics, Smartsens, and Sino Microelectronics, have issued price increase notices for products covering MCUs, analog chips, power devices, and other categories, with increases of up to 50%. Companies in passive components, wafer foundry, and packaging and testing have also raised prices, indicating that the trend of price hikes has spread from memory and upstream raw materials throughout the entire industrial chain.
Significant increase in mergers and acquisitions.
Driven by both policy incentives, such as the "Star Market Eight Articles" and "M&A Six Articles," and industry upgrade demands, the number of mergers and acquisitions among Star Market integrated circuit enterprises has increased notably.
Since the introduction of the "Star Market Eight Articles," the Star Market integrated circuit sector has seen 51 newly disclosed equity acquisition deals, with a total transaction value exceeding 77 billion yuan. This includes 23 significant asset reorganizations. While deals involving companies like Silan Integration, HHGrace, Siltronic, and Bright Power Semiconductor have been completed, several other projects have recently made substantive progress. Acquisition projects involving share or convertible bond issuance by SMIC, Telink Semiconductor, Prisemi, and JS Neusoft have been accepted for review by the Shanghai Stock Exchange. As project reviews advance, mergers and acquisitions in the Star Market's integrated circuit sector are expected to enter a phase of implementation and tangible results.
Industry insiders point out that looking ahead to 2026, the artificial intelligence industry remains in a period of rapid development. The popularity of AI innovation tools further solidifies the long-term value of upstream computing power infrastructure. The trend of semiconductor growth engines shifting comprehensively from consumer electronics like mobile phones and PCs towards AI and data centers is expected to continue. While AI is reshaping semiconductor demand structures, geopolitical factors are concurrently reshaping supply patterns. The localization process for semiconductors is gradually entering a deeper phase. Driven by technological progress and ecosystem improvement, related companies' products are expected to achieve a transition from being "usable" to "high-performing."
Comments