China chip firms ride AI demand to profit surge
SCMP · 1 SOURCES1 day ago2 MIN
Summary
Chinese chipmakers and related tech suppliers have flagged steep earnings growth as demand for domestic semiconductors and artificial intelligence infrastructure strengthens under Beijing’s self-reliance drive. Early disclosures for the third quarter and first nine months show gains spreading across processors, optical communications, storage and networking links in the supply chain. Several companies cited rising customer orders for home-grown alternatives to foreign chips, while others benefited from data-centre build-outs and still-supportive memory pricing. Morgan Stanley said on Sunday that memory prices could stay firm through 2027, but warned that supply catching up or slower customer purchases could cool the upcycle even without weaker AI demand
Key Points
- Shanghai-listed Yuanjie Semiconductor Technology expects third-quarter net profit of 403 million to 453 million yuan, up 579 to 660 per cent year on year
- Yuanjie, which makes laser chips for optical communications, said data-centre demand lifted shipments and helped preserve high profit margins in the quarter
- GPU designer MetaX, listed in Shanghai and also pursuing a Hong Kong listing, forecast nine-month net profit of 587 million to 717 million yuan
- MetaX said it returned to profit from a year-earlier loss because orders increased, even when non-recurring gains are excluded
- Hygon Information projected first-nine-month revenue growth of 50 to 64 per cent, citing stronger demand for high-end domestic chip alternatives
Why It Matters
For Hong Kong readers, the story matters because one of the companies, MetaX, is also pursuing a Hong Kong listing, linking mainland AI-chip momentum directly to the city’s capital market pipeline. The earnings surge also suggests that demand tied to AI servers, data centres and domestic substitution is reaching multiple layers of the supply chain, not just headline chip designers