A total of 190 publicly traded Chinese semiconductor companies reported a 620% year-over-year increase in net profit for the first half of 2026. While aggregate revenue grew by 68%, the significant profit surge highlights the industry's ability to manage costs effectively amidst high demand for components.
Local memory manufacturers CXMT and YMTC are driving this growth, benefiting from domestic import substitution policies amid Western sanctions. CXMT reported a net profit of $11.55 billion on $22.4 billion in revenue for the first half of the year, marking a turnaround from previous losses.
YMTC saw its first-quarter revenue reach $7 billion, nearly five times its total 2025 revenue. The company's first-quarter net profit of $5 billion also doubled its total profit for the previous year. Suppliers of equipment and materials to these firms are also reporting substantial financial gains.
The lithography equipment manufacturer AMEC reported a fourfold increase in net profit during the first half of 2026 compared to the same period last year. As China aims for technological independence by 2030, companies are increasingly turning to public markets to fund expansion, with YMTC planning to raise $5 billion.
