Production of semiconductor chip File photo: VCG

Chinese semiconductor companies reported strong earnings in the first nine months of 2026, as demand for artificial intelligence (AI) computing, rising memory-chip prices and market-driven progress in home substitution boost their business prospects.

Hygon Information Technology, a Chinese chip designer, disclosed on Tuesday that its revenue reached 14.95 billion yuan ($2.24 billion) in the first nine months, up 57.58 percent year-on-year, while net profit attributable to shareholders rose 45.12 percent to 2.847 billion yuan. The company attributed the growth to rapid AI development and a shift in domestic substitution from policy-driven progress toward market-driven demand.

China's leading dynamic random-access memory (DRAM) chipmaker CXMT showed a forecast revenue of 265 billion to 270 billion yuan in the first nine months of 2026, up 725.96 to 741.54 percent year-on-year. Net profit attributable to shareholders was projected at 131 billion to 132.5 billion yuan, compared with a loss of 5.28 billion yuan in the same period last year, according to the company's earnings forecast disclosure filed with the Shanghai Stock Exchange on October 17.

CXMT attributed the improvement to surging demand for AI computing, tighter global DRAM supply and sharply rising prices since the second half of 2025. The company also cited higher capacity utilization, improved production efficiency, continued research and development, and business expansion as factors supporting growth. 

Meanwhile, Allwinner Technology, another Chinese chip designer, forecast its first-three-quarter net profit of 640 million to reach 670 million yuan, up 129.85 to 140.62 percent year-on-year, according to its earnings forecast filed with the Shenzhen Stock Exchange on October 12.

The earning gains come as AI-related demand and shifts in global chip supply and pricing reshape the semiconductor industry.

The corporate results also came amid a broader expansion in China's semiconductor trade. Customs data showed that China's integrated circuit exports rose 99.1 percent year-on-year in the first three quarters of 2026. The increase outpaced the 16.4-percent growth in China's overall goods exports during the same period.

The global semiconductor market is also benefiting from the AI boom. The World Semiconductor Trade Statistics (WSTS) organization expects global chip sales to rise 90 percent to $1.51 trillion in 2026, with memory chips accounting for much of the growth. The market is forecast to expand by 27 percent in 2027, according to WSTS.

Global Times