China’s AI boom, self-sufficiency push fuel earnings surge for local chip firms
Chinese chip and tech firms have flagged as much as six-fold growth in unaudited third-quarter profits, as huge demand for home-grown processors and artificial intelligence infrastructure filters through links in the supply chain amid the country’s push for self-reliance. Shanghai-listed Yuanjie Semiconductor Technology expected its quarterly net profit to land between 403 million yuan and 453…
China's AI boom and push for self-sufficiency in chip manufacturing are driving a surge in earnings for local chip firms. Shanghai-listed Yuanjie Semiconductor Technology expects a six-fold increase in unaudited third-quarter profits, while MetaX, a GPU designer, turned a profit in the period due to increasing orders. Memory supplier Shenzhen Longsys Electronics projects a 20-fold increase in net profit, and optical module supplier Accelink Technologies forecasts a 65-82% growth.
The growth in chip production is also benefiting materials suppliers, with Hubei Feilihua Quartz Glass predicting a 35-56% increase in net profit. Despite potential cooling effects from supply catching up or customers slowing purchases, the overall trend indicates a strong push towards domestic chip production in China.
Brief written by urgent.news from SCMP Tech's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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