Cambricon Technologies Corp Ltd

China unveiled its 15th five-year plan for the electronic information manufacturing industry, covering the period from 2026 to 2030, aimed at strengthening domestic capabilities in semiconductors and advanced manufacturing. This sent Chinese chip and electronics stocks higher today (Sept 16) on expectations that the government will increase support for the sector. The plan targets large qualifying companies in the electronic information manufacturing industry to achieve combined revenue of more than 30 trillion yuan, or 4.4 trillion US dollars, by 2030, while aiming for industry research and development investment to rise to 3.5% of revenue. China designated integrated circuits, advanced computing, consumer electronics, basic electronics, and power electronics as priority industries. For semiconductors, the policy covers everything from chip design and manufacturing, advanced packaging and testing, to equipment and materials for semiconductor production, as well as electronic design automation. China wants to drive breakthroughs in high-end processors, memory chips, and analog chips. The move boosted stocks in the sector, with Cambricon Technologies surging 6%, while Shanghai-listed Semiconductor Manufacturing International Corp rose 4.2% and its Hong Kong-listed shares gained 4.4%. NAURA Technology rose 3.8%. Consumer electronics stocks also advanced, with Luxshare Precision up 2.7%, BOE Technology up 2.1%, and Foxconn Industrial Internet up 3.2%, while Goertek also gained. The measures come as China's technology sector draws support from investment in artificial intelligence and advanced manufacturing, with the country's industrial output in August rising 5.2% year on year, while production of industrial robots and lithium-ion batteries expanded strongly. Beijing also wants to strengthen domestic supply chains, as Chinese companies face restrictions on access to advanced semiconductors and manufacturing technology from abroad.

A global shortage of high-bandwidth memory is reshaping the economics of the AI chip market, strengthening Micron Technology's pricing power while pressuring Nvidia's GPU margins. Reuters reported September 10 that Chinese AI-chip makers including Huawei and Cambricon are raising accelerator prices because high-bandwidth memory has become increasingly scarce, with Huawei's upcoming Ascend 950DT quoted at more than 250,000 yuan, roughly 20% to 50% above earlier pricing. Micron's HBM4 is already in high-volume production for Nvidia's Vera Rubin platform, delivering more than 2.8 TB/s of bandwidth per stack, and the company has signed long-term agreements aimed at reducing the cyclicality that has historically plagued memory manufacturers. Nvidia, meanwhile, must share more of each AI server's system economics with memory, networking, foundry and packaging suppliers, and higher HBM costs can pressure margins or raise system prices. Hedge-fund positioning improved for both stocks in the second quarter, with Micron ownership rising to 184 funds from 154 and Nvidia to 285 from 275, while short interest stood at approximately 2.7% of Micron's float and 1.2% of Nvidia's as of August 14.

The compute landlord thesis went global this week as Google, NVIDIA and SpaceX each moved to lock down power, distribution and capacity. Google committed €13B to Finland, securing a 22-year power purchase agreement with the Fortum Loviisa nuclear plant. NVIDIA reportedly agreed to acquire Hugging Face for $12.9B, taking control of the main conduit for open-weight models such as Qwen and DeepSeek, which account for 61% of tokens consumed on OpenRouter. At SpaceX, an undisclosed tenant signed a $13.3B annual commitment, lifting total ARR for the hosting unit to roughly $41B across four pillars — Anthropic, Google, Reflection AI and the mystery customer — with 90-day termination clauses starting in 2027. In China, prices for Huawei and Cambricon AI chips are surging 20% to 50% as export controls push manufacturers into grey-market high-bandwidth memory; the Huawei Ascend 950DT now carries an indicated price above 250,000 yuan, roughly $37,000 per accelerator, while Cambricon's forthcoming 690 chip has been repriced 20% to 30% higher than quotes from two months earlier. DeepSeek V4.1 Flash cuts inference costs by 80% through its Causal Encoder-Decoder architecture, compressing cache-hit costs to $0.003 per token, and Positron AI raised an $875M Series C at a $5B valuation for its Asimov chip, which swaps scarce high-bandwidth memory for commodity LPDDR5X and claims 90% bandwidth utilization against NVIDIA's typical 30%.

Huawei Technologies has notified some clients that it is significantly raising prices on its most advanced AI accelerators as demand rapidly outstrips supply during the data center boom. The suggested price for Huawei's Ascend 950DT jumped roughly 60% over the past three months to 250,000 yuan, or $37,300, apiece, according to Bloomberg. That price was set in line with Nvidia's B200, the report said, noting that both companies sell their AI processors in batches of eight or more and that pricing varies with order size and how much each customer buys of auxiliary equipment such as networking. Huawei is also grappling with production hiccups, with sales representatives telling customers that supply of high-bandwidth memory is particularly limited and pushing up costs. Reuters earlier reported the Ascend 950DT price jump and said Beijing-based Cambricon Technologies Corp. is also increasing prices by as much as 30%.

Premier Li Qiang chaired a State Council executive meeting on August 21, deploying moderately proactive and coordinated efforts to advance next-generation communications network construction, and deliberating and adopting documents including the revised draft regulations on emergency response, investigation, and handling of electric power safety accidents. The application by Yangtze Memory Technologies Holding Company Limited for an initial public offering and listing on the STAR Market was accepted on the evening of August 21, with a proposed fundraising amount of 33 billion yuan. From January to March 2026, the company achieved operating revenue of 47.042 billion yuan and net profit attributable to the parent company of 33.379 billion yuan. On August 22, the 2026 Green Computing Power and Artificial Intelligence Conference was held in Hohhot. Hohhot and Ulanqab signed 13 projects with companies including Volcano Engine and Cambricon, with a total investment of 136.1 billion yuan. Yangtze Optical Fibre and Cable released its 2026 half-year report, with net profit attributable to the parent company of 2.925 billion yuan in the first half, up 888.88 percent year on year. The United States measure imposing an additional 50 percent tariff on some Canadian goods officially took effect at midnight Eastern Time on August 22, and Canada announced it would take full reciprocal countermeasures.

As of August 19, 88 companies on the Shanghai Stock Exchange's STAR Market had disclosed their 2026 semi-annual reports, with combined operating revenue of 204.3 billion yuan and net profit of 18.9 billion yuan, up 32% and 154% year on year respectively. Among them, 71 companies were profitable, 51 posted profit growth, and 11 turned losses into gains. The 12 STAR 50 index constituents that have disclosed semi-annual reports recorded combined operating revenue of 117.4 billion yuan and net profit of 9.2 billion yuan, up 25% and 216% year on year, contributing nearly 60% of the board's disclosed revenue and nearly half of its net profit. The domestic computing power ecosystem was the clearest main theme in the first half. SMIC's second-quarter sales revenue reached 3.006 billion US dollars, a record quarterly high, while Hua Hong Semiconductor posted sales revenue of 717.5 million US dollars in the same period, also a record high. Design-side companies such as Cambricon and Hygon Information delivered substantial earnings growth. Innovative drugs and high-end equipment also stood out. BeiGene's first-half net profit attributable to the parent company rose 627.1% year on year, and it raised its full-year total revenue guidance to between 6.6 billion and 6.8 billion US dollars. AVIC UAS saw operating revenue rise 272.48% year on year. At the same time, interim dividends among STAR Market companies increased notably. Since the start of 2026, 86 new share buyback plans have been disclosed, with a combined maximum amount of 11.448 billion yuan, and 29 new shareholding increase plans have been disclosed, with a combined maximum amount of 1.005 billion yuan.

Chinese AI semiconductor company Cambricon Technologies reported interim results showing net profit more than doubled from a year earlier. The company is accelerating support for domestic large language models, with its self-developed AI chips meeting growing demand in the Chinese market. Specific profit and revenue figures were not disclosed, but the company is benefiting from Chinese government policies to build a domestic AI semiconductor ecosystem.

Cambricon released its 2026 interim report on August 8, 2026. Total operating revenue was 5.996 billion yuan, and net profit attributable to the parent was 2.311 billion yuan. Net cash inflow from operating activities was 311 million yuan, down 65.83 percent from the same period last year. The company's latest asset-liability ratio was 25.48 percent, up 9.10 percentage points from the previous quarter. The latest gross margin was 55.25 percent, down 0.67 percentage points from the same period last year. The latest return on equity was 17.05 percent, and diluted earnings per share was 3.68 yuan.

The Shanghai Composite Index closed at a three-week high after China's July exports expanded more strongly than expected. The index ended at 3,940.04 points, up 39.68 points or 1.02 percent. Exports rose 23 percent year-on-year, beating analyst forecasts of 22.2 percent, while imports increased 27.5 percent, slightly below expectations. China posted a trade surplus of 112.5 billion dollars, higher than forecast. Artificial intelligence stocks gained, led by Cambricon Technologies up 2.72 percent and SMIC surging 3.38 percent.

Chinese AI chip designers are projecting surging revenue this earnings season as Beijing pushes local firms to use homegrown components. Cambricon Technologies Corp. is expected to post sharply higher first-half revenue, while Shanghai Iluvatar CoreX Semiconductor Co. may see sales triple over the same period. Beijing-based Moore Threads Technology Co. said last month it expected first-half 2026 revenue to grow as much as 149%. A Bloomberg Intelligence survey in June found Chinese companies expect to spend 46% of their AI accelerator budget on locally-made chips in the next 12 months, up from 30% now. Morgan Stanley estimates China's self-sufficiency in AI chips could reach 70% by the end of this decade, driven by a 2 trillion yuan data center buildout that will rely on local suppliers for at least 80% of technology.

On the evening of August 7, multiple listed companies on the Shanghai and Shenzhen stock exchanges released positive announcements. Biwin Storage's holding subsidiary, Guangdong Core Harmony, plans to introduce external investors through a capital increase and share expansion. The total financing for this round will not exceed 600 million yuan, with external investors collectively acquiring no more than 23.0769 percent equity. After the capital increase, the company's shareholding will be no less than 52.5186 percent. Green Power plans to have its holding subsidiary invest in the construction of a 460-megawatt wind power project in Tianjin, with a total dynamic investment of approximately 2.475 billion yuan and a capital financial internal rate of return of about 19.24 percent. Focuslight Technologies plans to raise no more than 1.021 billion yuan through a private placement for projects including high-end optical interconnect core optical components. iSoftStone signed an agreement with Shijiazhuang Tiedao University and China Railway Construction Digital Intelligence Technology to jointly build an AI plus railway embodied intelligence common technology pilot base. Chaoying Electronics plans to invest 2.086 billion yuan to build a high-multilayer and HDI printed circuit board P3 project. Chinalin Securities plans to acquire a total of 94 percent equity in HNA Futures through a 202 million yuan agreement transfer, and will gain control after the transaction. Cambricon achieved operating revenue of 5.996 billion yuan in the first half of 2026, up 108.13 percent year-on-year, with net profit of 2.311 billion yuan, up 122.61 percent year-on-year. China Rare Earth reported net profit of 237 million yuan for the first half, up 46.53 percent year-on-year. China State Construction's controlling shareholder, China State Construction Engineering Corporation, received a shareholding increase loan support of no more than 900 million yuan from the Beijing branch of Industrial and Commercial Bank of China. TGOOD received a special stock repurchase loan commitment of no more than 540 million yuan from the Qingdao branch of Industrial and Commercial Bank of China. Zhejiang Shibao plans to raise no more than 1.394 billion yuan through a private placement for projects including the industrialization of automotive steer-by-wire systems.

Cambricon released its 2026 half-year report, achieving operating revenue of 5.996 billion yuan, up 108.13% year-on-year, and net profit attributable to shareholders of the listed company of 2.311 billion yuan, up 122.61% year-on-year. The company said that demand in the AI computing power market is steadily rising, and it continues to deepen cooperation with leading enterprises in the finance and internet sectors by leveraging its core competitiveness in AI chips. As of the end of the period, prepayments stood at 2.914 billion yuan, up 291.37% year-on-year, and inventory book value was 8.248 billion yuan, up 66.83% year-on-year, accounting for 45.32% of total assets at period-end. In addition, SK Hynix announced it will build new wafer fabs in Yongin and Cheongju, South Korea, with a combined investment of about 54 trillion won, approximately 38.4 billion US dollars, to meet the growing demand for memory chips in the AI era. Biwin Storage's holding subsidiary Guangdong Xinchenghanqi plans to increase capital and expand shares by introducing external investors, with total financing in this round not exceeding 600 million yuan. Zhongjuxin's half-year 2026 net profit grew 72.75% year-on-year. Telink Semiconductor terminated the matter of issuing shares and paying cash to acquire 100% equity of Shanghai Panchip Microelectronics and raising supporting funds. ACM Research's first-half net profit rose 42.14% year-on-year. Focuslight Technologies plans a private placement to raise no more than 1.021 billion yuan for a high-end optical interconnect core optical component R&D and industrialization capacity building project. ST Hangtu and its actual controller Wang Yuxiang were placed on file by the CSRC for suspected illegal information disclosure. Aerospace Yuxing completed nearly 2 billion yuan in Series D financing, with its valuation exceeding 10 billion yuan, joining the ranks of commercial aerospace unicorns.

The Shanghai Composite Index closed higher today, supported by a surge in semiconductor stocks and artificial intelligence-related shares. The index ended at 3,832.26 points, up 27.57 points or 0.72 percent. Stocks that posted strong gains included Cambricon Technologies, which jumped 6.10 percent, Zhongji Innolight, which rose 4.40 percent, and Eoptolink Technology, which soared 6.71 percent. On the economic data front, China's National Bureau of Statistics reported that the manufacturing purchasing managers' index fell to 49.2 in July from 50.3 in June, missing analyst expectations of 50. The non-manufacturing PMI came in at 49, the lowest level since December 2022 and down from 50.2 in June. A reading below 50 indicates that both China's manufacturing and services sectors are in contraction. Meanwhile, the Political Bureau of the Communist Party of China held its July meeting, emphasizing plans to further deepen capital market reforms while strengthening market resilience and investor confidence.

The Shanghai Composite Index closed higher today at 3,858.25 points, up 44.05 points or 1.15 percent, supported by buying in technology and chip stocks. Leading the gains, Shengyi Technology surged 6.13 percent, Eoptolink Technology rose 3.15 percent, Zhongji Innolight added 2.91 percent, NAURA Technology gained 1.72 percent, and Cambricon Technologies advanced 1.31 percent. The uptick helped offset negative sentiment from China's June industrial profits report, which showed growth of just 15.1 percent year-on-year, slowing from May's 21.1 percent expansion and marking the slowest growth rate since the start of the year. Industrial profits for the first six months rose 18.7 percent year-on-year, edging down slightly from the 18.8 percent increase in the first five months.

On the afternoon of July 24, A-share computing power chip concept stocks rebounded in volatile trading. Meishi Technology hit its daily limit up in a straight line, while PNC Process Systems and Tongfu Microelectronics also sealed their boards. ASR Microelectronics rose over 10%. In terms of news, during the 2026 World Artificial Intelligence Conference, the first domestic TPU thousand-card intelligent computing cluster in East China was officially inaugurated in Hangzhou. Jointly built by Hangzhou Telecom, ZTE, and Zhonghao Xinying, this cluster is the first large-scale domestic TPU cluster deployment project within the China Telecom system, marking the entry of domestic TPUs into the carrier-grade scale deployment stage. A research note from Guolian Minsheng Securities pointed out that the shipment share of domestic AI chips has exceeded 40%, with product matrices from manufacturers such as Huawei Ascend and Cambricon continuing to improve, while cloud vendors are simultaneously accelerating their self-developed ASIC layouts. A research report from China Merchants Securities showed that first-quarter 2026 revenues for Hygon Information Technology, Cambricon, Moore Threads, Muxi, and VeriSilicon grew by 68%, 160%, 155%, 75%, and 114% year-on-year, respectively. Moore Threads disclosed a major commercial contract worth 660 million yuan, and as of the end of April, VeriSilicon's new order scale reached 8.2 billion yuan. Sinolink Securities believes that industry fundamentals are sound, and in the third quarter, Nvidia Rubin, AMD MI450, and others will ship in large volumes, with leading companies in the global AI industry chain likely to continue exceeding performance expectations.

Z.AI has completed construction of a 1-gigawatt data center that it plans to fill exclusively with Chinese-made chips, a person familiar with the matter said. The company, formerly known as Zhipu, has begun partially operating the facility and has already installed at least 10,000 domestically produced semiconductors there. Z.AI now runs multiple computing clusters each with more than 10,000 locally designed chips across this and other data centers. The move advances Beijing's push to reduce reliance on restricted Nvidia silicon for artificial intelligence development. Z.AI shares closed up 37% on Tuesday.

The Shanghai Composite Index closed higher today after China's State Council pledged to implement policies to keep economic growth on track for the full year 2026. The index closed at 3,864.37 points, up 68.09 points or 1.79 percent. Chinese authorities also rolled out support measures for the technology sector, helping Cambricon Technologies surge 11.58 percent, SMIC jump 11.2 percent, Eoptolink Technology climb 7.25 percent, and Zhongji Innolight rise 2.51 percent.

Morgan Stanley All People Innovation Mixed Fund A disclosed its second quarter 2026 report, with a second quarter profit of RMB 34.12 million and a net asset value growth rate of 90.29%. As of the end of the second quarter, the fund size was RMB 63.04 million. Fund manager Li Ziyang stated that the fund continues to focus on investing in the technology industry chain, and is bullish on the explosive demand for computing power driven by AI Coding and Agents. The prosperity of both overseas and domestic computing power industry chains continues to exceed expectations. For domestic computing power, the shipment expectations for chips such as Ascend in 2026 have been significantly revised upward. As of July 17, the fund's one-year adjusted unit NAV growth rate was 59.57%, and the maximum drawdown over the past three years was 47.89%. The top ten heavy holdings at the end of the second quarter included Konfoong Materials International, Shengyi Technology, and Cambricon.

Macquarie says now is the best time to invest in China's AI chip players, citing domestic AI development, large language model growth, and government support. The firm initiated coverage on five stocks, with Shanghai-listed Cambricon as its top pick, rated outperform with a price target of 2,060 yuan, more than 50% above Friday's close. Among Hong Kong-listed names, Macquarie prefers Biren Tech with a target of 140 Hong Kong dollars, more than double Friday's close, while rating Shanghai-listed Hygon underperform due to market share concerns. Huawei remains the dominant AI chip supplier in China, with Cambricon a distant second in shipments last year, according to IDC data cited by Macquarie.

Chinese artificial intelligence-related stocks surged after CSRC Chairman Wu Qing announced regulatory reforms to accelerate technological self-sufficiency. The measures, unveiled at the Lujiazui Forum, ease IPO standards for AI developers, support advanced sectors like quantum computing, and encourage Hong Kong tech companies to dual-list on the mainland. Hong Kong-listed LLM developers Zhipu and MiniMax jumped over 23%, while onshore chipmakers Cambricon Technology, MetaX, and Moore Threads also posted significant gains, driving the ChiNext Price Index to new highs. Analysts noted the rally highlights a stark divergence, with non-AI sectors remaining in a bear market.