--- title: "Profits in China’s chipmaking sector soar 2,500% in first half amid AI boom" type: "News" locale: "en" url: "https://longbridge.com/en/news/293937412.md" description: "China's chipmaking sector profits surged 2,579.5% in H1 2026, driven by AI demand. NBS data shows electronics industry profits rose 97%, with total industrial profits up 18.7%. IC production grew 23% to nearly 280 billion units. Major firms like Longsys and GigaDevice forecast massive profit jumps due to supply tightness and self-sufficiency efforts." datetime: "2026-07-27T13:03:50.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293937412.md) - [en](https://longbridge.com/en/news/293937412.md) - [zh-HK](https://longbridge.com/zh-HK/news/293937412.md) generator: "portal-rs" --- # Profits in China’s chipmaking sector soar 2,500% in first half amid AI boom China’s major chip manufacturers saw their profits skyrocket a staggering 2,579.5 per cent in the first half of 2026, fuelled by unprecedented demand for artificial intelligence and computing power, according to data from the National Bureau of Statistics (NBS) on Monday. The state agency attributed the surge to accelerated integration of AI across various fields, which in turn generated massive demand for computing power, according to Yu Weining, chief statistician of the NBS department overseeing industrial statistics. Computing demand also pushed the broader electronics industry’s profits up by 97 per cent year on year, according to Yu, who added that electronics also served as a key driver of the rapid growth of total industrial profits. During the first half, profits for China’s major industrial enterprises – those with an annual revenue of over 20 million yuan (US$2.9 million) – grew 18.7 per cent to 4 trillion yuan. The data marked a stark contrast with the same period last year, when AI had yet to trigger the massive global data centre buildout. In the first half of 2025, industrial profits dropped 1.8 per cent to 3.4 trillion yuan, while electronics industry profit only grew 3.5 per cent year on year. The NBS did not separately disclose the chip manufacturing industry’s profits during last year’s first half period. China is undergoing a pivotal shift in its industrial landscape, as the global AI frenzy triggers explosive demand for high-performance computing and memory chips. The country’s chip exports also surged amid the global AI infrastructure buildout. Data released by NBS earlier this month showed that China’s integrated circuit production volume grew by 23 per cent year on year in the first six months, reaching nearly 280 billion units. On average, the country was manufacturing over 1.5 billion chips every day. The profit boom is also evident in the first half earnings forecasts of leading domestic chipmakers, which are capitalising on both the AI supercycle and Beijing’s accelerated push for chip self-sufficiency. Shenzhen Longsys Electronics, one of China’s biggest memory module makers, expected a more than 600-fold surge in first-half profit, while flash memory designer GigaDevice projected its first-half net profit would rise by roughly 1,099 per cent year on year, driven by tight industry supply and rising product prices. On the AI chip side, domestic companies also see strong profit growth, albeit at a slower pace than in the memory market. Hygon Information Technology, which designs central processing units and deep computing units – a type of accelerator card designed specifically for AI – expects its first-half profits to jump by up to 52.3 per cent. ### Related Stocks - [03986.HK](https://longbridge.com/en/quote/03986.HK.md) - [301308.CN](https://longbridge.com/en/quote/301308.CN.md) - [603986.CN](https://longbridge.com/en/quote/603986.CN.md) - [688041.CN](https://longbridge.com/en/quote/688041.CN.md) ## Related News & Research - [GigaDevice seeks shareholder approval for 2026 H-share award scheme with 10% issuance cap](https://longbridge.com/en/news/296223864.md) - [GigaDevice Semiconductor schedules interim results briefing via SSE Roadshow Centre](https://longbridge.com/en/news/296245710.md) - [How Nvidia stock could get a surprise China boost](https://longbridge.com/en/news/296372392.md) - [GigaDevice Publishes Unaudited Interim Results for First Half of 2026](https://longbridge.com/en/news/296260055.md) - [After skyrocketing 95% in 3 years, here are the bull and bear cases investors must know about this trillion-dollar AI stock](https://longbridge.com/en/news/296202578.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**