Chinese semiconductor companies recorded the highest revenues last year, driven by rapidly growing AI demand, global memory chip shortages, and U.S. export restrictions that accelerated China’s push for technological self-reliance.

Companies such as SMIC, Hua Hong, and Moore Threads reported strong growth, with expectations of higher revenues in 2026 as domestic demand for AI infrastructure continues to rise. U.S. restrictions have acted as a catalyst, forcing China’s tech giants to rely more on local chipmakers.
Key growth drivers include:
Explosive demand for AI chips and data center infrastructure
Expansion of electric vehicles that support mature node chips
Global memory chip shortages, driving prices higher
Chinese memory companies such as CXMT also saw major gains, benefiting from limited access to high-end (HBM) foreign memory, which creates opportunities for domestic alternatives despite lower performance.
However, challenges remain. Chinese companies are still lagging behind global leaders such as TSMC in advanced chip manufacturing due to a lack of access to critical equipment from companies such as ASML. While China is rapidly building its own semiconductor ecosystem, achieving full technological independence will take time.
Future growth depends on whether China can surpass basic chips and successfully develop advanced technologies such as next-generation GPUs and high-end memory.
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