The electronics industry achieved revenue of 1,850.3 billion yuan in the first half of 2025, representing a 19% year-over-year increase, with net profit attributable to shareholders reaching 85.2 billion yuan, up 31% year-over-year. Overall, AI cloud computing hardware demand remains robust in 2025, driving high-speed growth across the industry chain.

AI cloud computing has driven demand for AI servers, switches, optical modules, and other components. NVIDIA's procurement activities and significantly increased inference demand, coupled with strong ASIC demand, have notably benefited the PCB sector, alongside recovering demand across multiple downstream sectors. AI-PCB companies are experiencing strong order flow, operating at full capacity, and actively expanding production. High growth performance is expected to continue in the second half of the year. The cyclical demand recovery and strong AI demand are driving pricing trends upward, positioning the PCB sector for robust performance growth in 2025.

**Electronics Industry Continues Positive Trajectory in H1 2025**

The electronics industry achieved revenue of 1,850.3 billion yuan in H1 2025, up 19% year-over-year, with net profit attributable to shareholders of 85.2 billion yuan, up 31% year-over-year. Q2 2025 revenue reached 1,011.0 billion yuan, up 20% year-over-year, with net profit attributable to shareholders of 50.0 billion yuan, up 42% year-over-year, showing improved profitability.

H1 2025 gross margin was 15.8%, up 0.3 percentage points year-over-year, with net margin at 4.5%, up 0.6 percentage points year-over-year. Q2 2025 gross margin was 15.9%, up 0.1 percentage points year-over-year and 0.4 percentage points quarter-over-quarter, with net margin at 4.7%, up 0.4 percentage points year-over-year and 0.6 percentage points quarter-over-quarter.

Overall, AI cloud computing hardware demand continues to be strong in 2025, driving high-speed growth across the industry chain. Domestic semiconductor self-reliance and import substitution demand has accelerated, with the equipment sector showing impressive performance. Consumer electronics and semiconductors are benefiting from gradually recovering terminal demand, showing steady upward momentum.

**PCB Sector Performance Enhanced by Strong AI Cloud Demand and Cyclical Recovery**

AI cloud computing has driven demand for AI servers, switches, optical modules, and other components. NVIDIA's procurement activities, significantly increased inference demand, and strong ASIC demand have notably benefited the PCB sector, alongside recovering demand across multiple downstream sectors.

AI-PCB companies are experiencing strong order flow, operating at full capacity, and actively expanding production. High growth performance is expected to continue in the second half of the year. The cyclical demand recovery and strong AI demand are driving pricing trends upward, positioning the PCB sector for robust performance growth in 2025.

H1 2025 revenue was 132.7 billion yuan, up 25.2% year-over-year, with net profit attributable to shareholders of 12.39 billion yuan, up 59.3% year-over-year. Q2 2025 revenue was 70.25 billion yuan, up 24.5% year-over-year, with net profit attributable to shareholders of 7.01 billion yuan, up 56.6% year-over-year.

**Semiconductor Equipment Self-Reliance Accelerates with Outstanding Performance**

H1 2025 revenue was 38.92 billion yuan, up 31.7% year-over-year, with net profit attributable to shareholders of 6.31 billion yuan, up 20.3% year-over-year. Q2 2025 revenue was 21.04 billion yuan, up 33.5% year-over-year, with net profit attributable to shareholders of 3.74 billion yuan, up 19.4% year-over-year.

Escalating external sanctions have catalyzed the self-reliance process, while AI leads a new innovation cycle, driving expansion in AI chips, memory chips (including HBM), and advanced packaging (including COWOS). Combined with cyclical recovery expectations, domestic fab expansion certainty is strong, with continued counter-cyclical expansion expected to advance key core production line construction and equipment localization.

**Design Sector Achieves High-Speed Growth with Strengthened Import Substitution Logic**

The design sector achieved revenue of 58.137 billion yuan in H1 2025, up 19.5% year-over-year, with net profit attributable to shareholders of 8.62 billion yuan, up 67.5% year-over-year. Q2 2025 revenue was 32.04 billion yuan, up 21.9% year-over-year, with net profit attributable to shareholders of 5.16 billion yuan, up 64.4% year-over-year.

The U.S. has increased tariffs on China and restricted high-end chip exports to China, strengthening the import substitution logic, with the design sector expected to continue benefiting.

**Other Sectors Performance**

Consumer electronics/electronic chemicals/electronic components/automotive electronics/optics and optoelectronics/other electronics achieved H1 2025 revenue of 878.43/30.61/158.04/197.79/363.05/101.852 billion yuan, representing year-over-year growth of 24.8%/7.9%/24.2%/15.5%/6.0%/34.7%, with net profit attributable to shareholders of 32.79/3.13/15.76/10.86/6.57/2.81 billion yuan, up 15.4%/13.9%/47.3%/22.8%/92.6%/29.7% year-over-year.

Q2 2025 revenue for these sectors was 478.40/16.08/84.02/101.96/189.11/53.11 billion yuan, representing year-over-year growth of 26.9%/-0.5%/23.9%/17.7%/5.6%/-3.5%, with net profit attributable to shareholders of 18.55/1.60/8.871/6.01/3.13/1.59 billion yuan, up 24.3%/-1.8%/44.6%/22.3%/42.3%/34.4% year-over-year.

Overall, with inventory destocking reaching reasonable levels and terminal consumer electronics demand recovery driving growth, other electronic subsectors also achieved solid profit growth in H1 2025.

**Investment Recommendations**

Large language models continue to upgrade, with computing power demand continuously increasing, driving high demand for AI chips, AI servers, optical modules, switches, and other components. The second half of the year will see numerous AI smartphones and AI PC flagship product launches, entering peak demand season. In the medium to long term, AI is expected to empower consumer electronics and drive replacement demand. The focus should be on AI-PCB, AI-driven, and self-reliance beneficiary industry chains.

**Risk Warnings**

Risk of demand recovery falling short of expectations; risk of AI progress falling short of expectations; risk of further escalation of external sanctions.