China AI chip industry sees surge in profits and growth

China's semiconductor and artificial intelligence chip sectors are experiencing significant growth and a shift toward profitability, driven by rising demand for computing power and domestic import substitution policies. According to data from the National Bureau of Statistics, profits in the integrated circuit industry surged 18.5 times between January and July 2026, largely fueled by the 'AI+' strategy and expanding demand for computing and storage chips.

Several key GPU and AI chip developers reported major financial turnarounds in the first half of 2026. MetaX Integrated Circuits reported a net profit of CNY 612 million, while Iluvatar CoreX Semiconductor posted a net profit of CNY 106 million. Other firms, including Moore Threads Technology and Binren Technology, also saw substantial revenue increases and reduced losses.

In the automotive sector, Horizon Robotics reported a significant turnaround, with net profits reaching CNY 3.784 billion for the first half of the year. The company, a provider of intelligent driving solutions, saw its revenue grow by 32.9% year-on-year, maintaining a leading market share in ADAS and intelligent driving computing platforms.