Author: Feng Ning
In July, as A-share semi-annual report forecasts were released intensively, the outstanding performance of the semiconductor sector continued to dominate the headlines. From upstream semiconductor equipment and core IC (Integrated Circuit) design, to midstream storage modules and wafer foundry, and then to downstream packaging and testing, the entire semiconductor industry chain saw a broad rally, with collective and substantial surges in performance.
01. IC Design Industry: Storage Takes the Crown
Storage Industry: Full of Market Superstars
If the semiconductor industry has "top superstars" and "kings of profit" in 2026, memory chips are undoubtedly the ones. Both module leaders and IC design companies have delivered performance reports that truly shock the market.
Biwin Storage expects to achieve operating revenue of RMB 15 billion to RMB 16 billion in the first half of 2026, a year-on-year increase of 283.40% to 308.96%; it expects to realize a net profit attributable to shareholders of the parent company of RMB 7 billion to RMB 7.5 billion in the first half of 2026, a year-on-year increase of 3200.15% to 3421.59%. Regarding the surge in operating performance, Biwin Storage attributes it mainly to the benefits of the AI computing power explosion and the memory industry entering a high-prosperity cycle. Biwin Storage focuses on the semiconductor memory field, deploying multiple business lines including memory chip design, memory modules, embedded memory, advanced packaging and testing, and memory testing equipment. Its products are widely used in scenarios such as AI servers, edge computing terminals, consumer electronics, and industrial storage.
Longsys released its semi-annual performance forecast for 2026. Data shows that Longsys's revenue in the first half of the year is expected to be RMB 22 billion to RMB 25 billion, a year-on-year increase of 116% to 145%, with an expected net profit of RMB 9.2 billion to RMB 11 billion, a year-on-year increase of 62204% to 74394%. This is probably one of the most profitable performance forecasts in the A-share market this year. Longsys is in the midstream position of the memory industry chain, purchasing wafers from original manufacturers such as Samsung, and supplying downstream after self-developed master control and firmware packaging and testing. However, HBM has become a "capacity black hole". Its 3D stacking structure consumes wafer area more than 3 times that of standard DRAM, and its production is extremely demanding. The three major original manufacturers are competing to shift cleanroom resources to HBM, severely squeezing the capacity for general-purpose DRAM/NAND. Against this backdrop, relying on the renewed wafer supply agreements (LTA/MOU) with major original manufacturers, Longsys has secured a scarce ticket to enter the industry's capacity.
Memory leader GigaDevice is also taking a strong lead, achieving a tenfold growth trend. In the first half of 2026, it achieved a revenue of about RMB 11.5 billion, a year-on-year increase of about 177%; the net profit attributable to shareholders of the listed company was about RMB 6.9 billion, a year-on-year increase of about 1099%; it is expected to achieve a non-recurring net profit of about RMB 4.85 billion, a year-on-year increase of about 791%.
The growth in GigaDevice's performance benefits from a key word: "niche" memory. As mentioned above, as the three major overseas memory giants continue to reduce the capacity supply of niche categories such as NOR Flash, niche DRAM, and SLC NAND, it directly causes a continuous shortage in the segmented track. The explosion of the AI industry has further amplified this supply-demand gap. AI servers, AI PCs, and edge intelligent hardware have significantly increased the demand for code storage NOR Flash, with the NOR integration volume of a single intelligent device increasing several times compared to traditional hardware; the continuous expansion of industrial control and NEV (New Energy Vehicle) further consolidates the basic demand for memory chips. Under the mismatch of supply and demand patterns, GigaDevice, as the only company in mainland China with a comprehensive layout of four core product lines: NOR Flash, SLC NAND, niche DRAM, and general-purpose MCU (Microcontroller Unit), is entering a harvest period.
Techwinsemi expects to achieve operating revenue of RMB 16 billion to RMB 18 billion in the first half of 2026, a year-on-year increase of 289% to 338%; the net profit attributable to shareholders of the listed company is expected to be RMB 5.7 billion to RMB 6.5 billion, a year-on-year increase of 4932.74% to 5611.02%. During the reporting period, the AI large model inference end continued to expand, and the demand for high-performance memory products in data centers increased rapidly. At the same time, the capacity expansion cycle on the NAND Flash wafer supply side is relatively long, and the tightening supply-demand relationship has driven up the prices of memory products.
Under the large volume of tens of billions in revenue, these companies can still achieve a tenfold jump in profits, which is enough to prove that the supply-demand gap in the memory track has reached the point of "extreme shortage".
Ingenic expects to achieve operating revenue of RMB 3.989 billion in the first half of 2026, a year-on-year increase of 77%; net profit attributable to the parent company of RMB 1.079 billion to RMB 1.282 billion, a year-on-year increase of 431.03% to 531.34%; non-recurring net profit is expected to be RMB 1.049 billion to RMB 1.253 billion, a year-on-year increase of 551.97% to 678.58%. With dual efforts in DRAM and Flash, it steadily reaps the double dividends of memory price increases and demand explosion.
Memory interface chip leader Montage Technology expects its revenue in the first half of 2026 to be RMB 3.335 billion, a year-on-year increase of about 26.6%; the net profit attributable to shareholders of the listed company will reach RMB 1.9 billion to RMB 2.1 billion, a year-on-year increase of 63.9% to 81.2%. Montage Technology stated that the significant growth in operating performance in the first half of 2026 is mainly due to the benefits of the AI industry trend and strong industry demand. On the one hand, with the increase in DDR5 penetration rate and continuous iteration of sub-generations, the company's DDR5 RCD chip shipments have increased, among which the shipment proportion of the third and fourth sub-generation RCD chips has further increased; on the other hand, the revenue of new interconnect chips such as MRCD/MDB, PCIe Retimer, CKD, and CXLMXC chips has climbed.
02. Computing Power Chips: Running the Second Growth Curve
On the evening of July 16, two GPU leaders, Hygon Information and Moore Threads, released their first-half performance forecasts. Among them, Moore Threads expects its revenue in the first half of this year to be RMB 1.65 billion to RMB 1.75 billion, a year-on-year increase of 135.12% to 149.37%; Hygon Information expects to achieve a revenue of RMB 8.5 billion to RMB 9.3 billion in the first half of this year, a year-on-year increase of 55.56% to 70.20%, with a net profit attributable to the parent company of RMB 1.7 billion to RMB 1.83 billion, a year-on-year increase of 41.50% to 52.32%.
This set of data releases a clear signal: domestic computing power chips are no longer just "spare tires", but are truly meeting the computing power demand brought by the AI explosion. Behind this is the thirst for GPUs in large model training and inference, the accelerated implementation of domestic digital transformation, and the positive cycle formed by capital and technology after listing. As AI applications continue to advance, domestic computing power demand is growing rapidly. According to Frost & Sullivan's forecast, the size of China's AI chip market will increase from RMB 142.5 billion in 2024 to RMB 1.3 trillion in 2029, with a compound growth rate of up to 54% from 2025 to 2029.
The latest financial report data of FPGA and SoC (System on Chip) companies are also an unignorable highlight in the semiconductor sector.
In the past, discussions about AI chips mainly focused on cloud GPUs; but in 2026, the AI battlefield has shifted from the cloud to the edge and the terminal. The comprehensive implementation of industrial intelligence, automotive computing power, local large models, and smart homes has ushered in a period of rapid growth for FPGA, SoC, and IoT (Internet of Things) MCU chips.
Domestic FPGA leader Fudan Microelectronics expects to achieve operating revenue of RMB 2.2 billion to RMB 2.4 billion in the first half of the year, a year-on-year increase of 19.64% to 30.52%; the net profit attributable to shareholders of the parent company is RMB 800 million to RMB 1 billion, a year-on-year increase of 313.19% to 416.49%. The significant improvement in its performance is mainly due to the recovery of industry prosperity and the growth of downstream customer demand, with the revenue and gross profit of each product line of the company's IC design achieving growth. At the same time, the company continues to promote technological innovation and product iteration, and FPGA series products, NFC radio frequency, RFID products, automotive-grade MCU products, and various solutions are continuously launched and contribute to operating revenue.
With its high flexibility, high parallelism, and low latency, FPGA is widely used in AI and edge inference fields.
The two major domestic SoC leaders have also delivered better-than-expected answers. Rockchip expects its revenue in the first half of 2026 to be RMB 2.87 billion to RMB 2.91 billion, a year-on-year increase of 40.28% to 42.24%, with a net profit attributable to the parent company of RMB 850 million to RMB 910 million, a year-on-year increase of 60.03% to 71.33%. Allwinner Technology expects its net profit attributable to the parent company in the first half of 2026 to be RMB 475 million to RMB 515 million, a year-on-year increase of 194.73% to 219.55%.
Even Beken Corporation, the leader in the segmented Wi-Fi MCU track, has achieved a year-on-year net profit growth of 149.59% to 175.59%, with a net profit attributable to shareholders of the listed company of RMB 48 million to RMB 53 million. In the first half of 2026, it achieved an operating revenue of RMB 620 million to RMB 640 million, a year-on-year increase of 65.24% to 70.57%.
These sets of data reveal a brand new industry trend: AI no longer relies solely on cloud computing power to hold the stage; terminal-side and edge intelligence are becoming the core incremental battlefield for domestic chips.
03. Semiconductor Equipment: "Shovel Sellers" Win Easily
There is an old saying in the industry: buy equipment in a bull market.
When chip design and terminal manufacturing are fully exploding, the most certain beneficiaries must include upstream semiconductor equipment manufacturers, which are the "shovel sellers" running through the entire industry chain.
Domestic test equipment leader Changchuan Technology expects a net profit attributable to the parent company of RMB 900 million to RMB 1 billion in the first half of 2026, a year-on-year increase of 110.76% to 134.18%; non-recurring net profit is expected to be RMB 855 million to RMB 955 million, a year-on-year increase of 139.38% to 167.38%.
The growth logic of Changchuan Technology is built on three relatively independent industry cycles: computing power chip testing (driven by AI), memory chip testing (driven by the expansion of domestic memory chip companies), and advanced packaging equipment (driven by Chiplet and CoWoS, etc.). The three entered the volume expansion rhythm synchronously around 2026, forming a superposition effect on the company.
As the semiconductor equipment market expands across the board, the growth performance of the testing segment is particularly prominent. SEMI data shows that the global semiconductor equipment market will continue to expand from 2024 to 2027E, with the market size growing from USD 116.6 billion in 2024 to USD 155.6 billion in 2027E. Among them, the growth elasticity of test equipment is significantly leading, with a compound growth rate of up to 21.1% from 2024 to 2027E. It is expected that in the future, with the explosion of demand for AI chips and automotive-grade power devices, the demand for chip inspection will continue to push up, driving test equipment to maintain a high growth rate in the medium and long term.
Although NAURA (Northern Huachuang) and AMEC (Advanced Micro-Fabrication Equipment) have not yet released their first-half performance forecasts, it is not difficult to see from the explosive growth of Changchuan Technology: the semiconductor equipment markets such as etching, thin film deposition, and testing are entering a new round of expansion cycle with the strong demand for AI.
04. Top Three Packaging and Testing Giants: Surging Collectively
TFME (Tongfu Microelectronics) expects a net profit of RMB 1.6 billion to RMB 1.8 billion in the first half of 2026, a year-on-year increase of 288.26% to 336.80%. The company is deeply bound to global top AI chip manufacturers, with high-end GPU and CPU packaging orders fully loaded throughout the year. At the same time, HBM memory packaging and automotive-grade chip packaging businesses continue to expand, the proportion of high-end business continues to increase, and both revenue and net profit are steadily rising.
JCET (Changdian Technology) expects a net profit attributable to the parent company of RMB 770 million to RMB 950 million in the first half of 2026, a year-on-year increase of 63.48% to 101.7%; non-recurring net profit is expected to be RMB 740 million to RMB 910 million, a year-on-year increase of 68.95% to 107.76%. Huatian Technology is also full of explosive power, expecting a net profit of RMB 750 million to RMB 850 million in the first half of 2026, a year-on-year increase of 231.16% to 275.31%; non-recurring net profit is RMB 200 million to RMB 280 million, a year-on-year increase of 2559.59% to 3543.42%.
The scaled implementation of advanced packaging is completely rewriting the profit logic of the packaging and testing industry.
In early 2026, the global semiconductor industry ushered in a landmark turning point: the capacity gap of TSMC (Taiwan Semiconductor Manufacturing Company)'s CoWoS advanced packaging exceeded 30%, and industry giants such as ASE announced a 30% across-the-board price increase for packaging services. Many AI chip manufacturers publicly stated that the core bottleneck restricting the mass production of top AI chips is no longer just the wafer manufacturing capacity of advanced processes such as 7nm and 3nm, but also depends on the capacity and technology supply of the advanced packaging link. Taking the current mainstream AI acceleration chips as an example, products using the Chiplet architecture + 3D stacking packaging can increase computing power by 2 to 3 times, increase data transmission bandwidth by more than 5 times, and reduce overall costs by 40% compared with single-chip solutions of the same process. This model of "architecture innovation + packaging upgrade" is becoming the consensus choice for global top chip manufacturers to break through the performance limit. At the same time, domestic top packaging and testing enterprises are also continuously increasing the layout of advanced packaging capacity, gradually getting rid of low-end homogeneous competition.
The A-share semiconductor semi-annual report in the first half of 2026 is not only a carnival of numbers, but also a centralized realization of industry logic. From the "profiteering myth" of memory chips, to the "second curve" of computing power chips, and then to the "rising tide" of equipment and packaging and testing links, the resonance of the entire industry chain clearly depicts a fact: AI has penetrated from the cloud into every semiconductor segmented track.