BEIJING (Realist English). Chinese semiconductor companies reported record revenues in 2025, driven by surging demand for artificial intelligence infrastructure, global shortages of memory chips and ongoing U.S. export restrictions that have accelerated Beijing’s push for technological self-sufficiency.
Semiconductor Manufacturing International Corporation, the country’s largest chip producer, said revenue rose 16% year-on-year to $9.3 billion, with analysts expecting it to exceed $11 billion in 2026. Another major player, Hua Hong Semiconductor, reported record quarterly revenue of $659.9 million and forecast continued strong sales.
Emerging companies are also expanding rapidly. Moore Threads, which aims to compete with Nvidia, projected revenue growth of more than 230% in 2025.
Analysts say multiple factors are driving the surge. The rapid expansion of AI data centers and electric vehicle infrastructure has boosted demand for both advanced and mature-node semiconductors. At the same time, U.S. export controls have intensified domestic demand.
“Restrictions have added rocket fuel to China’s chip demand,” said Paul Triolo of Albright Stonebridge Group, noting that domestic firms are increasingly replacing foreign suppliers.
Export limits on high-performance chips — particularly those from Nvidia — have prompted Chinese tech companies to adopt local alternatives. Firms such as Huawei have stepped in, helping to close what analysts describe as a domestic “compute gap,” even if performance still lags behind Western products.
China’s memory chip sector has also seen exceptional growth. ChangXin Memory Technologies reported a 130% increase in revenue to more than 55 billion yuan ($8 billion), benefiting from global shortages and rising prices for memory components essential to AI systems.
High-bandwidth memory (HBM), a critical technology for AI, remains dominated by global leaders including Samsung Electronics, SK Hynix and Micron Technology. However, restrictions on exporting advanced HBM to China have created opportunities for domestic producers to gain market share, even with older-generation technologies.
Despite strong revenue growth, Chinese chipmakers continue to lag behind global leaders in advanced manufacturing. Companies such as Taiwan Semiconductor Manufacturing Company maintain a technological edge, partly due to access to cutting-edge equipment from ASML, which remains restricted for Chinese firms.
Analysts warn that while current growth is driven by import substitution and domestic demand, long-term sustainability will depend on China’s ability to move up the value chain.
“China is attempting to rebuild the entire semiconductor supply chain domestically,” Triolo said. “That is unprecedented — and will take time.”
The sector’s rapid expansion highlights a broader shift in the global technology landscape, where geopolitical tensions are increasingly shaping supply chains, investment flows and the future balance of technological power.
