On the second-to-last trading day before the Lunar New Year, the technology sector staged a robust rebound, drawing significant investor attention. On February 12, the semiconductor industry index surged 2.43%, ranking among the top performers in Shenwan's secondary industry classification and emerging as a key highlight in the tech sector.

The semiconductor industry is poised for sustained high growth. Recently, the Semiconductor Industry Association (SIA) projected that global semiconductor sales would hit a record $791.7 billion in 2025, marking a 25.6% year-on-year increase.

By 2026, worldwide semiconductor sales are expected to reach approximately $1 trillion, implying a further growth of over 25% compared to 2025.

The substantial expansion in global semiconductor sales in 2025 was largely driven by strong demand for new data center computing equipment, enabling major chip manufacturers to achieve above-average profits and consistently exceed growth forecasts.

Previously, the World Semiconductor Trade Statistics (WSTS) organization had estimated 2025 global semiconductor sales at around $700 billion. However, actual market growth significantly surpassed expectations.

In China, semiconductor sales exceeded $210 billion in 2025, breaking the $200 billion threshold for the first time and setting a new record. Year-on-year growth surpassed 15%, with China maintaining a share of about 30% of global semiconductor sales.

Despite external technological restrictions, China's semiconductor industry accelerated its pursuit of self-sufficiency, achieving major technological breakthroughs across multiple sectors. These advances contributed to steady growth in semiconductor exports.

According to customs data, China's semiconductor export value reached ¥1.4442 trillion in 2025, an increase of over 27% year-on-year. The average export price per unit exceeded ¥4 for the first time, rising by more than 8% from the previous year. Both export value and unit price reached historic highs.

Meanwhile, China's integrated circuit (IC) imports surpassed ¥3 trillion for the first time in 2025, though growth slowed to below 11% year-on-year—significantly lower than export growth. The ratio of IC exports to imports approached 0.48, the highest level in five years, indicating a gradual reduction in external dependency.

Industry observers note that this trend not only reflects the growing competitiveness of Chinese IC products in the global market but also signals China's increasing influence in the global semiconductor landscape.

Looking ahead to 2026, New Century Ratings expects the semiconductor industry to maintain strong growth, supported by rising demand for AI servers and deeper integration of AI applications. Supply-demand gaps and price increases in memory chips are likely to persist. Companies with core R&D capabilities, technological breakthroughs, and customer validation are expected to lead in market share gains amid domestic substitution trends.

In the A-share market, semiconductor companies reversed their performance in 2024 and further accelerated growth in 2025. Among approximately 70 listed firms that have disclosed annual results (or preliminary estimates), total revenue exceeded ¥254.5 billion, up nearly 27% year-on-year—a gain of over 5 percentage points from the prior year. Net profit surpassed ¥5.2 billion, surging more than 80% year-on-year, a fivefold increase from the previous year.

Notably, five companies reported revenues exceeding ¥10 billion in 2025. SMIC led with revenue surpassing ¥67.323 billion, a historic high, driven by strong customer demand, accelerated product validation, and expanded production capacity. The company expects 2026 revenue growth to outpace the industry average.

Shenzhen Longsys Electronics Co., Ltd. reported revenue of at least ¥22.5 billion, with several of its core controller chips entering mass production. The company also completed its first tape-out of a UFS 4.1 controller chip, positioning it among a small group of firms globally with self-developed controller chip capabilities.

Advanced Micro-Fabrication Equipment Inc. China, Shenzhen Techwinsemi Technology Co., Ltd., and Biwin Storage Technology Co., Ltd. each surpassed ¥10 billion in revenue for the first time, benefiting from a strong memory market and high technical and customer barriers.

In terms of profitability, companies such as Shenzhen Longsys Electronics Co., Ltd., Hangzhou Changchuan Technology Co., Ltd., Smartsens Technology (Shanghai) Co., Ltd., and Shenzhen Bluetrum Technology Co., Ltd. saw net profit growth exceed 100% in 2025. Firms including Cambricon Technologies Corporation Limited, 3peak Incorporated, and Sai Microelectronics Inc. returned to profitability.

Eleven semiconductor companies outperformed analyst expectations in 2025. These firms are active in popular segments such as memory, Douyin's AI model Doubao, silicon wafers, AI applications, and optical modules.

Notable examples include Yuanjie Semiconductor Technology Co., Ltd., which reported net profit growth of at least 2950%, exceeding the consensus forecast of under 2750%. The company is involved in optical chips and modules.

Biwin Storage Technology Co., Ltd. posted net profit growth of over 425%, well above the consensus estimate of under 270%. Huaxin Securities noted that the company maintains rapid growth in emerging AI edge applications, supported by its self-developed controller chips, firmware algorithms, and advanced packaging and testing capabilities.

Year-to-date, these 11 firms have averaged a share price increase of nearly 15%. Biwin Storage Technology Co., Ltd. and Hangzhou Changchuan Technology Co., Ltd. both rose more than 25%, while five companies—Sai Microelectronics Inc., Shenzhen Techwinsemi Technology Co., Ltd., Actions Technology Co., Ltd., Aisen Semiconductor Co., Ltd., and Shenzhen Bluetrum Technology Co., Ltd.—underperformed the semiconductor index, which gained 13.92%.

Sai Microelectronics Inc. returned to profitability with net profit growth exceeding 930%, far surpassing analyst estimates. Shenzhen Techwinsemi Technology Co., Ltd. reported net profit growth of at least 85%, exceeding consensus forecasts by over 29 percentage points.