China’s semiconductor industry performed well in the first half, with an over 20 percent jump in both profit and revenue, despite the downturn in the global economy and other pressures. However, there were clear winners and losers in different segments.

China’s semiconductor sector logged a 20 percent surge in net profit in the first half from the same period last year to CNY29.9 billion (USD4.2 billion) and a 22 percent jump in revenue to CNY2 trillion (USD290.6 billion), according to the semi-annual reports released by 102 firms listed in Shanghai or Shenzhen.

Leader of the pack was chipmaking giant Semiconductor Manufacturing International Corporation which posted a 19.2 percent gain in net profit over the period to CNY6.2 billion (USD891 million) while revenue soared 52.8 percent to CNY24.5 billion (USD3.5 billion).

Twenty-seven semiconductor manufactures doubled their net profit. Internet of Things and AI chip developer NationalChip Science & Technology did particularly will with its net profit surging more than 19-fold.

However, just seven companies saw their revenue double compared with 25 last year, due to a downturn in the global semiconductor industry. Six of the seven are listed on Shanghai’s Nasdaq-style Star Market.

Cambricon, which makes artificial chips, was at the bottom of the pile, racking up losses of CNY622 million (USD89.7 million). It was the only company out of the 102 to log losses of more than CNY100 million.

Winners: Gear Makers

Semiconductor equipment suppliers did well, boosted by massive capacity expansion projects at semiconductor wafer foundries. Total profit among listed firms in the sector doubled over the period to CNY2.2 billion (USD316 million) while revenue jumped 60 percent to CNY11.3 billion.

One such supplier, Piotech, reported a four-and-half-fold leap in revenue to CNY523 million (USD75.1 million), recording the highest revenue growth among the 102 listed firms. It also achieved a turnaround in the first half, scoring net profit of CNY108 million. Another equipment supplier Hawtsing's revenue soared nearly two-and-a-half times.

Similarly, semiconductor etching and cleaning equipment suppliers Naura Technology Group, Advanced Micro-Fabrication Equipment and ACM Research all saw their profit more than double.

And Losers: Consumer Electronics Suppliers

However, on the other hand, semiconductor makers for consumer electronics did not fare so well as the consumer electronics market, including smartphones, has been hard hit by the pandemic.

Profit at radio frequency semiconductor suppliers for mobile phones, for example, plunged 20 percent in the first half year on year to CNY900 million (USD129 million) while revenue dropped 6 percent to CNY4.9 billion. Profit margins shrank 3 percentage points from last year to 15.2 percent.

Maxscend Microelectronics, which supplies radio frequency semiconductors for cellphones and other mobile smart devices, logged a 25.8 percent dive in profit and a 5.2 percent slide in revenue.

 

• Link ：By Tang Shihua, Kim Taylor, Yicai Global