The global semiconductor industry is experiencing a new wave of price increases for core components such as memory chips and MCUs, which is directly impacting consumer end markets. Combined with surging demand for AI computing power and geopolitical factors, the semiconductor supply chain is expected to see a continued recovery in business activity.
Profitability and net profit growth in the semiconductor sector are accelerating. According to statistics, as of now, annual net profit data for A-share semiconductor companies for 2025 has been largely disclosed. Out of 165 companies that reported net profit, 115 were profitable, accounting for nearly 70% of the total, slightly higher than the level in 2024.
Looking back, semiconductor company revenue increased by 21.44% year-over-year in 2024, over 20 percentage points higher than the previous year, while net profit grew by 15.42%, an increase of nearly 66 percentage points. In 2025, revenue rose nearly 24% year-over-year, and net profit increased by 29.09%, indicating continued upward momentum in both revenue and profit growth compared to the prior year.
The improving performance of listed companies reflects the semiconductor industry's recovery after a downturn in 2022 and 2023. Since 2024, the sector has rebounded strongly, with growth accelerating further in 2025.
Reports indicate that signals from the SEMICON exhibition, regarded as a bellwether for the industry, suggest that AI-driven memory expansion, advanced logic process scaling, and booming demand for advanced packaging are driving the semiconductor equipment sector into a high-growth inflection point.
At the same time, domestic equipment makers are making rapid breakthroughs in areas such as etching, thin films, and cleaning, while advancing in metrology, photoresist coating, development, and ion implantation. Leading platform companies continue to enhance their layouts, with 2026–2027 expected to be a critical period for significant increases in localization rates.
At the exhibition, several leading companies showcased key technologies. AMEC introduced four new products covering key processes for silicon-based and compound semiconductors, further enriching its portfolio and integrated solution capabilities in etching, thin-film deposition, and core intelligent components. Hwatsing Technology exhibited a full range of advanced semiconductor equipment and integrated process solutions, including a high-current ion implanter in the ion implantation segment, where domestic penetration remains relatively low.
Nearly 50 companies saw their net profit for 2025 reach the highest level since 2019. Among them, 14 companies reported net profit exceeding 10 billion yuan, with Hygon Information, Montage Technology, AMEC, and Cambricon Technologies each surpassing 20 billion yuan.
Hygon Information's net profit reached 25.42 billion yuan in 2025, a year-over-year increase of 31.66%. The company's net profit growth for the first quarter of this year is estimated to be at least 22.56% higher than the same period last year. Analysts note that Hygon possesses two leading domestic products: CPUs and DCUs. CPU revenue is expected to grow steadily with the advancement of industry-specific IT adoption, while DCUs are benefiting from AI computing demand and accelerating domestic substitution trends, presenting historic opportunities for local AI chip makers. The company's DCU products are in the top tier in terms of performance and ecosystem, with new iterations driving sustained high growth.
Montage Technology's net profit surged over 58% year-over-year in 2025, largely driven by strong industry demand from AI trends, leading to a significant increase in shipments of its interconnect chips and substantially boosting annual operating results.
Cambricon Technologies reported its first profit since listing, with net profit reaching 20.59 billion yuan in 2025. The company attributed this to rising demand for AI computing power, competitive products, market expansion, and accelerated deployment of AI applications.
Notably, among the 14 companies, seven saw net profit exceed 10 billion yuan for the first time. Besides Cambricon, these include Smarter Microelectronics, Zhongke Bluewhale, Changchuan Technology, and Tongfu Microelectronics.
Semiconductor companies are also accelerating their global expansion. In recent years, the global semiconductor supply chain has experienced significant fluctuations, from initial chip shortages to later inventory adjustments and market recovery. Against this backdrop, Chinese semiconductor firms have stepped up efforts in self-sufficiency, with related products gradually gaining recognition from global customers, demonstrating strong resilience and vitality.
Customs data shows that in the first two months of this year, China's integrated circuit exports reached $43.3 billion, surging 72.6% year-over-year. This growth rate far exceeds the 21.8% increase in overall exports during the same period and marks a historic high in recent years.
At the same time, A-share semiconductor companies are expanding overseas faster. Statistics show that 59 semiconductor companies that have disclosed overseas revenue reported a combined overseas income of over 101.8 billion yuan in 2025, up nearly 23% year-over-year, an increase of more than 6 percentage points from the previous year. Overseas revenue accounted for over 34% of total revenue, roughly flat compared to the prior year.
Among these 59 companies, nearly 80% reported year-over-year growth in overseas revenue. Eighteen companies had overseas revenue exceeding 1 billion yuan, all of which increased from the previous year. Longsys, Smartsens, Biwin Storage, and Montage Technology each saw overseas revenue grow more than 50% in 2025.
Longsys reported overseas revenue of 6.914 billion yuan in 2025, an increase of nearly 108% from the previous year, citing factors such as foreign exchange settlement, logistics convenience, transaction practices, and taxation.
It is worth noting that companies including Shenzhen Goodix, Nexperia, Lontium Semiconductor, and Fudan Microelectronics, which saw increased overseas revenue in 2025, received additional investment from the national social security fund toward the end of last year, with the fund becoming a top-10 tradable shareholder in Lontium and Fudan Microelectronics.
In terms of market performance, the semiconductor sector performed strongly in 2025, with the Shenwan semiconductor industry index rising nearly 46%, ranking among the top sectors. However, since the beginning of this year, the sector has entered a correction phase. As of April 3, the index has declined slightly by 0.85%. Many companies within the sector have experienced significant pullbacks, including several high-performing stocks.
Statistics identify 16 semiconductor companies that have seen their stock prices fall at least 5% year-to-date, underperformed the semiconductor index in 2025, were profitable in 2025, and achieved net profit growth of no less than 30%.
Sorted by market performance, 11 companies have declined more than 10% since the start of 2026, including SMIC, Allwinner Technology, Nexchip Semiconductor, and Silan Microelectronics.
SMIC's stock rose less than 30% in 2025 and has fallen over 25% since the beginning of 2026. The company stated that capital expenditure for 2025 was $8.1 billion, with 2026 expenditure expected to be roughly flat, and corresponding capacity will gradually increase in the following periods.
Silan Microelectronics gained less than 10% in 2025 and has declined nearly 13% year-to-date. After a slight net loss in 2023, the company's performance returned to growth in 2024, with net profit of 220 million yuan. For 2025, net profit is estimated to be at least 330 million yuan, representing growth of at least 50%. The company has deeply implemented an "integrated" strategy, expanding output and adopting cost-saving measures to effectively respond to intense market competition, maintaining stable overall product毛利率 compared to 2024.
At the same time, subsidiaries including Silan Integrated's 5- and 6-inch chip production lines, Silan IX's 8-inch lines, and significant equity investee Silan JC's 12-inch lines are all operating at full capacity. The profitability of Silan Integrated, Silan IX, and Silan JC has improved compared to 2024.
In terms of institutional interest, eight companies have been surveyed by at least 10 institutions since the beginning of the year. Espressif Systems and Smartsens were each surveyed by over 100 institutions, while Shenzhen Goodix, Ingenic Semiconductor, and Chipmore Technology were each surveyed by more than 20 institutions.
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