Breaking Through the Cycle! Semiconductor Revenue Drives Overseas Growth with Double Acceleration—16 High-Quality Stocks That Were “Wrongfully Killed” Revealed

In recent months, the global pricing boom for core semiconductor components such as storage chips and MCUs has kicked off a new wave of price increases, directly feeding through to consumer end markets. Coupled with the impact of multiple factors, including a surge in AI computing power demand and geopolitical issues, the semiconductor industry’s business outlook is expected to continue recovering.

Semiconductor Industry

Accelerated Growth in Revenue and Net Profit

According to Securities Times · Data Treasure statistics, as of now, relevant net profit data for A-share semiconductor industry companies for 2025 (including earnings forecasts; for forecasts, the lower bound is used, same as below) has basically been fully disclosed (only a small number of companies have yet to disclose their annual reports or performance forecasts).

Overall, among 165 companies that disclosed net profit, 115 achieved profitability in 2025. The share of companies reporting profits is close to 70%, slightly exceeding the 2024 level.

Looking back at history, in 2024, revenue for semiconductor companies grew year over year by 21.44%, which was an increase of more than 20 percentage points compared with the prior year. Net profit grew year over year by 15.42%, an increase of nearly 66 percentage points compared with the prior year. In 2025, year-over-year revenue growth (comparable basis) was close to 24%, and year-over-year net profit growth was 29.09%. The increases in both revenue and net profit have continued to move upward compared with the prior year.

With listed companies’ performance continuing to improve, it is a microcosm of the semiconductor industry’s shift from downturn to recovery. After experiencing the sluggish periods of 2022 and 2023, since 2024 the semiconductor industry has seen a strong rebound, and in 2025 it has even accelerated its growth.

As reported by Gelonghui, the “bellwether” of the semiconductor industry—at the 2026 SEMICON exhibition—sent a clear signal: AI-driven storage capacity expansion, a ramp-up in advanced logic process volumes, and a surge in advanced packaging demand. These three main themes together are expected to push the semiconductor equipment industry into a high-growth turning point.

At the same time, domestic equipment has been making rapid breakthroughs in areas such as etching, thin films, and cleaning. It is also gaining momentum in measurement, spin coating and photoresist development, and ion implantation. Top platform-based companies continue to refine their layouts. 2026—2027 will become a key stage for a major increase in localization rates.

Meanwhile, at the above exhibition, multiple leading companies showcased major technologies. MicroTech (中微公司) introduced four new products covering key processes for both silicon-based and compound semiconductors, further enriching the company’s product portfolio and capabilities in systemized solutions across etching equipment, thin-film deposition equipment, and core intelligent components. Huawei Haike (华海清科) presented its full range of advanced semiconductor equipment and process integrated solution offerings, including in the ion implantation field where the localization rate is relatively low, the company also brought in a large-beam ion implantation machine, iPUMA-LE.

Nearly 50 Companies in 2025

Net Profit Hits the Highest Level Since 2019

From the perspective of individual companies, 46 semiconductor companies saw their 2025 net profit reach the highest level since 2019, while 14 companies had 2025 net profit exceeding 1 billion yuan. Among them, Hygon Information (海光信息), Gcore? (澜起科技), MicroTech, and Cambricon (寒武纪) each exceeded 2 billion yuan.

Hygon Information’s net profit in 2025 reached 8B yuan, up 31.66% year over year. The lower bound of the year-over-year growth rate of net profit for the company’s first quarter this year reached 22.56%.

According to Soochow Securities, Hygon Information has two major domestic leading products: the CPU and the DCU. For the CPU, as the industry’s innovation-driven development in IT solutions (信创) is steadily advanced, the company’s CPU product revenue will grow steadily. For the DCU, with the release of AI computing power demand and the acceleration of localization trends, domestic AI chip vendors are entering a historic opportunity. The company’s DCU product performance has ranked in the first tier of the performance ecosystem. New products are continuously iterated, and sustained high growth in performance verifies the industry’s business strength.

Gcore (澜起科技) saw its 2025 net profit increase by more than 58% year over year. The primary beneficiaries were AI industry trends and strong industry demand. The company’s shipments of interconnect chips increased significantly, driving a substantial year-over-year growth in the company’s operating performance for 2025 compared with the same period last year.

Since Cambricon’s listing, it achieved profitability for the first time. In 2025, its net profit reached 2.54B yuan. The company said that during the reporting period, benefiting from the sustained rise in AI industry computing power demand, it continued to expand the market by leveraging its strong product competitiveness and actively promoted the rollout of AI application scenarios.

Worth noting is that among the above 14 companies, 7 saw net profit break through 1 billion yuan for the first time. Besides Cambricon, these include GO? (赛微电子), Zhongke Blues? (中科蓝讯), Changchuan Technology (长川科技), Tongfu Microelectronics (通富微电), and others.

Semiconductor Companies Accelerate Overseas Expansion

In recent years, the global semiconductor supply chain has experienced severe fluctuations—starting with the early chip shortage wave, followed by the later inventory adjustment period with market recovery. Against this backdrop, China’s “chips” are accelerating the pace of self-reliance and controllability. Related products have gradually gained recognition from global customers, demonstrating strong resilience and vitality.

According to customs data, in the first two months of this year, China’s integrated circuit (chips) exports reached $43.3 billion, up 72.6% year over year. This growth rate far exceeds the 21.8% export growth rate of China’s overall exports in the same period, and it also set a historical high in recent years.

Meanwhile, A-share semiconductor industry companies are also accelerating their overseas expansion. According to Securities Times · Data Treasure statistics, among 59 semiconductor companies that have disclosed overseas business revenue, total overseas business revenue in 2025 exceeded 101.8 billion yuan, up nearly 23% year over year. This is more than a 6 percentage-point improvement compared with the prior year. In 2025, overseas business revenue accounted for more than 34% of revenue, basically in line with the previous year.

Among these 59 companies, the proportion of companies with overseas business revenue growing year over year in 2025 is close to 80%. 18 companies had overseas business revenue exceeding 1 billion yuan, and all of them increased compared with the prior year. Demingli (德明利), Sight?? (思特威-W), Awei Storage? (佰维存储), and Gcore (澜起科技) all recorded year-over-year growth in overseas business revenue of more than 50% in 2025.

Demingli’s overseas business revenue in 2025 was 2.06B yuan, up nearly 108% compared with the prior year. The company said the increase was mainly due to factors including foreign exchange settlement, logistical convenience, trading habits, and tax.

Worth noting is that among companies whose overseas business revenue increased year over year in 2025, Huiding Technology (汇顶科技), New Vision Energy? (新洁能), and LianDong Technology (联动科技), as well as Fudan Microelectronics (复旦微电) at the end of last year, all received additional holdings from the Social Security Fund. Moreover, the Social Security Fund newly entered as one of the top ten tradable shareholders of LianDong Technology and Fudan Microelectronics.

16 High-Quality Stocks That Were “Mistakenly Sold Off”

In terms of market performance, the semiconductor sector performed strongly in 2025. The Shenwan Semiconductor Index’s cumulative gain was close to 46%, ranking among the top in the industry. Since this year began, the sector has entered a pullback. As of April 3, the Shenwan Semiconductor Industry Index had dipped slightly by 0.85%. Many companies in the industry saw large pullbacks, including multiple high-quality stocks.

According to Data Treasure statistics, as of this year-to-date, there are 16 semiconductor companies whose cumulative stock price drop has not been less than 5%, whose full-year 2025 performance lagged the semiconductor industry index, and whose 2025 earnings were profitable with a year-over-year net profit growth rate of not less than 30%.

Ranked by market performance, there are 11 companies whose decline exceeded 10% since 2026, including SMIC (中芯国际), Allwinner Technology (全志科技), GigaDevice? (晶合集成), and Silan Microelectronics (士兰微).

SMIC’s cumulative gain in 2025 was below 30%, and since 2026 the stock has fallen by more than 25%. The company said that its capital expenditures in 2025 were $8.1 billion. Its capital expenditures in 2026 are expected to be broadly in line with 2025, and corresponding capacity will also be increased successively in the subsequent period.

Silan Microelectronics’ cumulative gain in 2025 was below 10%, and its decline since the beginning of this year has been close to 13%. After experiencing a slight loss in 2023, since 2024 the company’s performance has returned to the right track. In 2024 it achieved net profit of 220 million yuan, and in 2025 the lower bound of net profit was 330 million yuan. The lower bound of the year-over-year growth rate reached 50%. In 2025, the company deeply implemented an “integrated” strategy. By actively expanding output and taking various cost-reduction and efficiency-improvement measures, it effectively responded to intense external market competition, keeping the company’s overall gross margin on products basically stable compared with 2024.

At the same time, the company’s subsidiaries Silan Integration (士兰集成) 5- and 6-inch chip production lines, and Silan Xing (士兰集昕) 8-inch chip production lines, as well as the 12-inch chip production line of its important equity-investment company Silan Jike (士兰集科) all achieved full-capacity production. The profitability levels of Silan Integration, Silan Xing, and Silan Jike have all improved compared with 2024.

From institutional attention levels, this year there are 8 companies that received research visits from 10 or more institutions. Logos? (乐鑫科技) and Sight?? (思特威-W) received research from more than 100 institutions; Huiding Technology (汇顶科技), Xingdong Lianke (芯动联科), and Xinpeng Micro (芯朋微) each received research from more than 20 institutions.

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