Cambricon posts 108% surge in first-half revenue amid China’s massive AI chip drive
The Chinese AI chip giant saw revenue reach 6 billion yuan in the first half of the year, as Beijing pushes to replace foreign hardware
Chinese artificial intelligence (AI) chip giant Cambricon Technologies reported a 108 per cent surge in first-half revenue on Friday, as the firm capitalises on a massive domestic push to replace foreign AI hardware.
The chipmaker’s revenue for the first six months of the year reached 6 billion yuan (US$890 million), while profits also jumped 122.6 per cent year on year to 2.3 billion yuan, according to a stock exchange filing.
In the second quarter, the firm’s revenue was 3.1 billion yuan, in line with the consensus estimate of 3 billion yuan predicted by a Bloomberg poll. Net profit reached 1.3 billion yuan, up from 1 billion yuan during the previous quarter.
The company attributed the revenue surge to a steady increase in demand for AI computing power during the first six months. “Leveraging our core competitiveness in AI chips, we continued to strengthen in-depth cooperation with leading enterprises in the finance and internet sectors,” it said in the filing.
With US export controls largely cutting off China’s access to advanced AI accelerators from companies like Nvidia, domestic designers are rushing to fill the market vacuum.