Thanks to sustained expansion in AI infrastructure investment, Montage Technology Co.,Ltd. (688008.SH, 6809.HK) delivered robust earnings growth in the first half of 2026, setting new records across multiple key financial metrics while unveiling an interim cash dividend plan.

According to the company's 2026 semi-annual report, revenue reached RMB 3.335 billion in the first six months, up 26.7% year-on-year, while net profit attributable to shareholders surged 72.3% to RMB 1.997 billion. Excluding non-recurring items, net profit came in at RMB 1.322 billion, reflecting a 21.2% increase from the prior-year period.

On a quarterly basis, second-quarter revenue climbed 28.3% sequentially to RMB 1.875 billion, with attributable net profit rising 35.7% quarter-on-quarter to RMB 1.150 billion. Both figures marked all-time highs for any single quarter.

The gap between profit growth and revenue expansion stems from three key drivers: an upgraded product mix lifted gross margins for interconnect chips by approximately 5 percentage points year-on-year to 69.3%; investment income and fair value gains totaled RMB 682 million, up sharply from a year earlier; and the sale of the company's equity stake in XConn contributed RMB 456 million in related gains. Notably, RMB appreciation against the US dollar resulted in exchange losses of RMB 174 million, which partially weighed on reported profits. The company plans to distribute a cash dividend of RMB 2 per 10 shares (pre-tax), totaling approximately RMB 242 million.

Memory Interconnect Business Solidifies Leadership, DDR5 Upgrades Lead Industry

Memory interconnect chips serve as the core pillar of Montage Technology's business. With a global market share of roughly 36.8% (per Frost & Sullivan data for 2024), the company continues to strengthen its competitive edge in the DDR5 generation.

During the reporting period, shipments of the third and fourth sub-generation DDR5 RCD chips together surpassed 50% of total RCD output, while the fifth sub-generation entered volume shipments. This places the company's product iteration pace ahead of the industry. In June 2026, the company successfully delivered samples of its sixth-generation DDR5 RCD chip supporting data rates up to 9,200 MT/s, further underscoring its technological depth.

In high-bandwidth memory, Montage Technology remains one of only two global suppliers of first-generation DDR5 MRCD/MDB chips. Its second-generation products, supporting 12,800 MT/s, have entered volume trial use during the reporting period. Additionally, CKD chips for high-speed PC memory modules continue to ship steadily. The company unveiled next-generation CKD products supporting 9,200 MT/s in 2025, and rising AI PC adoption is expected to further drive demand.

PCIe/CXL Interconnect Portfolio Expands, AI Server Demand Boosts Shipments

PCIe Retimer chips represent one of the company's fastest-growing emerging businesses. Shipments grew significantly during the period, positioning Montage Technology as one of just two major global suppliers of PCIe 5.0 Retimer chips, with an approximate 10.9% global market share in 2024. A typical 8-GPU AI server uses roughly 8 to 24 PCIe Retimers, meaning rising AI server shipments directly drive demand for this product line.

In January 2026, the company launched its PCIe 6.x/CXL 3.x Retimer chips and AEC solutions. Engineering samples of PCIe 7.0 Retimer chips are scheduled for tape-out within this year. Development of PCIe Switch chips continues in parallel, with engineering sample tape-out also planned for 2026, which will create product synergies with the Retimer lineup once commercialized.

In the CXL interconnect space, Montage Technology became the first to begin trial production of CXL 3.2 MXC chips in July 2026, successfully winning adoption in next-generation CXL products from major memory module makers including Samsung Electronics and SK Hynix. Leading cloud service providers are progressively launching test systems featuring CXL memory pooling solutions, accelerating the path to commercial deployment.

R&D Investment Intensifies, H-Share Listing Broadens Capital Footprint

The company continues to ramp up research and development spending. R&D expenses reached RMB 453 million in the reporting period, up 26.9% year-on-year and maintaining a stable 13.6% of revenue. As of end-June 2026, R&D personnel numbered 604, representing approximately 74% of total headcount, with master's degree-or-higher qualifications accounting for roughly 65% of the R&D team.

Key R&D accomplishments during the period include: successful sampling of sixth-generation DDR5 RCD chips, completion of engineering sample tape-out for third-generation MRCD/MDB chips, and initiation of pre-research on first-generation DDR6 memory interconnect products. The company also completed tape-out of production versions of PCIe 6.x/CXL 3.x Retimer and CXL 3.x MXC chips. Engineering sample tape-out for high-speed Ethernet PHY Retimer chips is earmarked as a key R&D priority for the second half of the year.

On the capital front, Montage Technology completed its H-share listing on the Main Board of the Hong Kong Stock Exchange in February 2026 under ticker 6809.HK. The fundraising meaningfully strengthened the company's balance sheet, with total assets reaching RMB 23.18 billion by period-end, up 68.6% from the end of last year. Cash and equivalents stood at RMB 15.11 billion, while the debt-to-asset ratio remained a conservative 7.5%. The company also made its debut inclusion in the FTSE China A50 Index during the period, reflecting growing attention from international investors.