[News] China’s A-Share Semiconductor Profit Jumps 607% YoY in 1H26; CXMT Tops Both Revenue and Profit Rankings

China’s semiconductor sector delivered record first-half results in 2026, fueled by a memory upcycle, growing AI computing demand, and accelerating domestic substitution. According to ijiwei, combined net profit attributable to shareholders across the sector jumped more than sixfold from a year earlier in 1H26, with memory-related companies contributing the largest increase.

The report states that 186 A-share-listed semiconductor companies generated a combined RMB 160.51 billion in net profit attributable to shareholders in 1H26, up 607.2% YoY. The number of companies with revenue exceeding RMB 10 billion also increased significantly.

By revenue, CXMT ranked first with RMB 150.31 billion in 1H26, up 873.64% YoY. As China’s only domestic DRAM manufacturer, the company benefited from tight global supply and continued price increases. CECport ranked second with RMB 73.56 billion, up 164.19%, as its electronic component distribution business benefited from higher prices and volumes during the memory supercycle. SMIC ranked third with RMB 38.64 billion, up 19.4%, supported by strong demand for AI-related chips.

CXMT also ranked first by net profit attributable to shareholders, reaching RMB 77.61 billion, followed by Longsys at RMB 10.58 billion, the report points out.

Memory Supply Chain Drives the Earnings Surge

Memory was the biggest contributor to the sector’s earnings surge in 1H26. According to the report, six of the top 10 companies by revenue and five of the top 10 by net profit were part of the memory supply chain, accounting for the largest share of industry growth.

At the center of the memory-driven gains was CXMT, which led the sector in both revenue and net profit. The report notes that its capacity utilization remained high, while LPDDR6 samples have already been delivered to customers. The company has also continued to advance its DRAM technology. On September 20, CXMT announced that its fifth-generation DRAM platform, G5, had entered mass production, increasing gross die output per wafer by at least 50% from the previous generation. It also unveiled two 24Gb LPDDR5X products based on the platform.

The memory upcycle also benefited companies across the supply chain, including module makers Longsys and Biwin, chip designer GigaDevice, and distributor CECport, which recorded sharp increases in revenue and profit, the report adds.

AI Demand and Localization Add Further Momentum

AI computing demand provided another major growth driver. Cambricon saw both revenue and net profit more than double, while SMIC benefited from strong AI-related chip demand. Tongfu Microelectronics and JCET also gained from demand for high-performance computing packaging, as the report highlights.

Domestic substitution provided further momentum. According to the report, semiconductor equipment leader NAURA ramped shipments of products including etching and thin-film deposition equipment, lifting revenue 24.90% YoY to RMB 20.16 billion. AMEC also increased shipments of etching equipment, with net profit attributable to shareholders jumping 300.22% YoY.

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