In the six months since Chinese AI start-up DeepSeek unveiled a cost-effective approach to AI development, partially state-owned chipmaker Cambricon Technologies’ fortunes have turned around, registering a surge in revenue and profit.
The China-based company booked a net profit of CNY1 billion ($143.9 million) in H1 2025, compared with a loss of CNY533 million a year earlier, while revenue jumped nearly 44 times to CNY2.9 billion, Bloomberg reported.
In Q1, it reversed a loss of CNY227 million with a net profit of CNY355 million, Yicai stated.
The listed company apparently plans to raise nearly CNY4 billion for AI chip development to boost its market position.
The chipmaker acknowledged intensifying competition in the AI chip sector, Bloomberg noted. Nvidia and AMD reached deals with the US earlier in August to receive licences to restart exports of AI chips to the mainland in exchange for paying a 15 per cent levy.
Cambricon, which develops core processor chips for cloud servers and is a major supplier for DeepSeek, is benefiting from US sanctions limiting China’s imports of AI chips, which recently prompted calls by authorities to avoid purchasing AI chips from the US and buy local alternatives.
Its turnaround clearly demonstrates China’s chip sector continues to evolve, with a push for AI chip self-sufficiency, despite severe restrictions on the import of the most advanced chipmaking equipment.
Comments last week by US Commerce Secretary Howard Lutnick suggesting it wants mainland companies to become “addicted” to US chips spurred local regulators to press companies to stop buying Nvidia’s H20 processors.