Author: Fang Yuan
After enduring the pain of oversupply and fierce price competition from 2022 to 2024, the analog IC industry has finally welcomed a long-awaited recovery turning point in 2025. Data from WSTS shows that the analog IC market size experienced a mild recovery of 4% in the first half of 2025, with a projected year-on-year growth of 3.3% for the full year, and the growth rate is expected to further expand to 5.1% in 2026.
Looking at the annual financial reports of leading domestic manufacturers, revenue growth, turning losses into profits, and gross margin recovery have become the keywords throughout the year; meanwhile, overseas giants such as Texas Instruments (TI) and Analog Devices (ADI) have also delivered their recovery results.
01 Performance Turning Point Has Arrived: Recovery Paths of Five Domestic Analog IC Companies
If domestic analog IC companies were still mired in the quagmire of increasing revenue without increasing profit in 2024, then 2025 is undoubtedly a watershed moment. Multiple companies have not only delivered impressive results in terms of revenue but also achieved a critical leap from losses to profitability on the profit front, demonstrating a positive trend of shifting from quantity expansion to quality improvement.
Novosense is undoubtedly the most notable domestic analog IC company in terms of revenue growth in 2025. According to the company's performance express, it achieved an operating revenue of 3.368 billion RMB in 2025, a substantial year-on-year increase of 71.80%. The revenue growth is mainly attributed to three driving factors: steady growth in demand in the automotive electronics sector with continuous volume ramp-up of related products, overall recovery in the broad energy sector driving the recovery of demand from customers in photovoltaic energy storage and industrial automation, and rapid growth in demand from server power supply customers driven by AI. However, it should be pointed out that Novosense's net profit attributable to the parent company in 2025 was still -241 million RMB. Although the loss narrowed by about 40% compared to 2024, it has been in deficit for three consecutive years.
Chipown presents a completely different picture. This company, with the semiconductor energy track as its core strategic direction, achieved an operating revenue of 1.143 billion RMB in 2025, a year-on-year increase of 18.47%, and a net profit attributable to the parent company of 186 million RMB, a substantial year-on-year increase of 67.34%. Behind the profit growth rate far exceeding the revenue growth rate is the profound optimization of the product structure—revenue from emerging markets (servers, communications, industrial motors, photovoltaic energy storage and charging, NEVs) grew by about 50% year-on-year, and revenue from new product categories (DC-DC, Driver, Digital PMIC, Power Device, Power Module) increased by about 39% year-on-year. Notably, Chipown launched 12 core new products for the AI computing energy field in 2025, completed the full-link layout of server power supplies, and achieved a 1.9 times year-on-year growth in revenue from innovative power modules.
Bright Power Semiconductor achieved a critical reversal from losses to profitability in 2025. The company achieved an operating revenue of 1.57 billion RMB for the full year, a year-on-year increase of 4.40%, and a net profit attributable to the parent company of 36 million RMB, while it was in a loss state in the same period of 2024. The net profit attributable to the parent company after deducting non-recurring gains and losses was about 18 million RMB, a year-on-year increase of 299.79%. The core driving force for turning losses into profits comes from the continuous promotion of the product structure optimization strategy—the revenue of motor control driver ICs (the acquired company aims to provide customers with a comprehensive solution) and high-performance computing power supply ICs, as well as their proportion in total revenue, have increased year-on-year, driving the enhancement of the company's overall profitability. Notably, the proportion of Bright Power Semiconductor's traditional main business, LED lighting driver ICs, remains as high as 51.44%. Although the growth space in this field is limited, the company is gradually improving its revenue structure by actively deploying new tracks such as high-performance computing power supplies.
Injoinic is also a typical representative of turning losses into profits in 2025. The company achieved an operating revenue of 683 million RMB in 2025, with a net profit attributable to the parent company of 12.0754 million RMB, compared to a loss of 17.1709 million RMB in the same period last year. Achieving profitability against the backdrop of basically flat revenue is mainly due to cost control and improved profitability. More strategically, Injoinic completed the acquisition of Xingsense Semiconductor in 2025. After integration, it formed a complete product system of current sensing—motion sensing—power management—battery management—motor driving, aiming to enhance its competitiveness in emerging markets such as industrial control, NEVs, and aerospace.
As an established analog IC company, Shanghai Belling achieved an operating revenue of 3.174 billion RMB in 2025, a year-on-year increase of 12.59%, demonstrating a steady growth trend. However, its net profit attributable to the parent company was 236 million RMB, a year-on-year decrease of 40.28%, mainly affected by changes in non-recurring gains and losses. By product, the revenue of IC products was 2.06 billion RMB, a year-on-year increase of 9.77%; the revenue of semiconductor materials and accessories was 1.081 billion RMB, a year-on-year increase of 19.66%, becoming the main driving force for revenue growth. The data from Shanghai Belling shows that even against the backdrop of an overall industry recovery, the growth divergence among different business segments remains obvious.
02 Automotive Electronics: The Largest Incremental Market for Domestic Analog ICs
If asked which downstream application has the most solid and sustainable pull on domestic analog ICs in this round of recovery, the answer is highly likely to be automotive electronics. The power management demand brought by AI servers is growing rapidly, but it is concentrated in a few categories such as high-end multi-phase power supplies and DrMOS, with a relatively limited market size; whereas automotive electronics covers almost all categories of analog ICs—PMIC, signal chain, isolation ICs, sensors, driver ICs, and MCUs—providing domestic companies with broad space for value creation.
Industry insiders judge that the current analog IC market has limited focus directions. AI edge applications are the hottest and fastest-landing track at present. Although the current popularity of the automotive electronics track is not as high as that of AI edge, it absolutely has long-term potential.
In terms of market size, the CAGR of the domestic automotive analog IC market from 2025 to 2029 will reach 18%, and it is expected to surpass consumer electronics in 2029, becoming the largest downstream application market for analog ICs. However, according to Frost & Sullivan data, in 2024, the CR10 (market share of the top ten in the industry) of China's analog IC market accounted for 38.1%, of which overseas manufacturers accounted for 33%; while in the sub-segment field of automotive analog ICs, the CR10 accounted for 86.1%, of which overseas manufacturers accounted for 84.3%. This data precisely implies huge space for substitution. The industry believes that the country's mandatory requirements for the localization rate of automotive-grade ICs will continue to drive domestic automotive ICs to benefit. The certainty and market space of domestic substitution will continue to expand, becoming an important medium- to long-term support for the upward cycle of analog ICs.
In terms of value per vehicle, the current domestic EV penetration rate has approached 50%. Electrification and intelligence will drive the value of analog ICs per vehicle to reach 2,200 to 4,000 RMB, while the current coverage capability of mainstream domestic manufacturers still has much room for improvement—Novosense's automotive ICs cover a value per vehicle of over 1,500 RMB, and it plans to increase it to 3,000 to 4,000 RMB in the future, which fully demonstrates the growth elasticity of the track. At the product application level, domestic manufacturers are penetrating from peripheral components to core systems: Novosense's isolation products have achieved mature mass production in the automotive three-electric system, and products such as high-side and low-side switches and motor drivers have been expanded to scenarios such as battery management systems, chassis, and safety; Shanghai Belling's automotive-grade IGBT driver ICs and PMIC products have entered the supply chains of leading automakers such as BYD and Geely; after Bright Power Semiconductor acquired Innocomm Technology, automotive PMIC-related chips are expected to become a new growth pole; Chipown continues to layout in the field of vehicle chargers, and Injoinic accelerates its expansion into the NEV field through the integrated product strategy of three-electric + sensing + control. The layout of domestic analog IC companies in the automotive electronics track has shifted from point breakthroughs to surface coverage, and systematic competitiveness is accelerating to form.
03 The Shift of Overseas Leaders
The rise of domestic manufacturers is inseparable from the changes in the global competitive landscape. Over the past two to three years, Texas Instruments (TI) took the lead in launching an aggressive price war, attempting to squeeze the market space of competitors with its low-cost advantage. However, starting in the second half of 2025, TI's strategy has shown a clear shift—admitting misjudgment of the industry cycle, significantly cutting capital expenditures for 2026 and beyond, and shifting from a price war to profit recovery. Two consecutive rounds of price hikes are the clearest signal. ADI followed closely. In the first quarter of fiscal 2026, it achieved an operating revenue of $3.16 billion, a year-on-year increase of 30%, setting a new single-quarter revenue high in the past two years. GAAP net profit was $831 million, a year-on-year increase of 112%. All end markets achieved year-on-year growth, with particularly strong demand in the industrial, automotive, and communications sectors. This financial report is widely regarded by the market as a weighty verification signal of the recovery of the analog IC industry.
Infineon is also finding new growth points amid adjustments. In the first quarter of fiscal 2026, the company's revenue was €3.662 billion, a year-on-year increase of 7%. The company significantly raised the revenue target for its AI-related business, expecting the revenue in this field to reach about €1.5 billion in fiscal 2026, and the addressable market size by the end of 2030 is expected to reach €8 billion to €12 billion. In February this year, Infineon announced the acquisition of ams OSRAM's non-optical analog/mixed-signal sensor business for €570 million, further consolidating its leadership position in the sensor field. The acquired business is expected to generate approximately €230 million in revenue.
These moves by overseas giants convey several important messages. First, industry leaders have abandoned the strategy of fighting for market share at all costs, and turned to pursuing profitability quality and shareholder returns, creating a more friendly price environment for domestic companies. Second, automotive and AI are recognized as the two major high-growth tracks, and all giants are allocating resources around these two directions. Third, M&A integration is still ongoing, and industry concentration may further increase.
CSC Financial estimates that the current market share of domestic analog ICs is about 20% to 35%, corresponding to a substitution space of $16 billion to $28 billion. This scale is significantly higher than the current overall revenue scale of domestic manufacturers, meaning that the growth ceiling in the next few years is still very high. Referring to the landscape of the global analog IC market—TI alone accounts for about 19% of the share—the industry expects that in the future, China will most likely give birth to an analog IC leading company with a market share of over 10% and an annual revenue of over $2 billion. The only question is: who will be that one?
04 Recovery Is Not Uniform; Divergence Is the Main Theme
This round of recovery in the analog IC industry is essentially a structural divergence. Companies that can truly achieve a leap must be pioneers who have taken the lead in completing systematic product layout and deep customer penetration in key tracks such as automotive electronics and AI computing. Those companies that still stay in the low-end consumer electronics market and lack technological barriers and differentiated product lines will find it difficult to obtain excess returns even if the industry as a whole recovers.
Some rules can be seen from the performance of the five companies. Novosense has the most solid core foundation in automotive electronics, with high technological barriers for isolation products and the richest horizontally expanded categories, belonging to the type of accumulating strength for a sudden breakthrough. Bright Power Semiconductor's M&A integration strategy has taken effect the fastest. By quickly making up for shortcomings through inorganic growth, it is suitable for achieving leapfrogging during the industry integration period. Chipown's full-link layout in the AI computing energy field is the most forward-looking, seizing the time window for domestic substitution of server power supplies. Injoinic's integrated solution of three-electric + sensing + control reflects a small but exquisite differentiation idea. Shanghai Belling relies on central state-owned enterprise resources and automotive-grade product positioning, possessing unique advantages in financial stability.
There is no absolute superiority or inferiority among these paths, but they all point to the same direction: from quantity increase to quality change, and from substitution to innovation. In the past few years, the most common thing done by domestic analog IC companies is pin-to-pin compatibility—making a chip with exactly the same functions and pins as those from overseas giants, and seizing the market with lower prices. This strategy is effective in the consumer electronics field, but in fields such as automotive, industrial, and servers that have higher requirements for reliability and system solutions, mere compatibility and low prices are not enough to impress customers. What can truly build long-term competitiveness are those companies that can provide complete system solutions, jointly define products with customers, and take the lead in breakthroughs in cutting-edge applications.