Half-year results from Chinese AI semiconductor companies and industry data show that demand for high-end computing capacity is far outstripping supply, with orders surging at every stage from upstream to downstream. Biren Technology's revenue expanded to approximately 21 times the level of the same period a year earlier, while orders also concentrated at data centers and adjacent embedded systems and design operations.
Biren Technology, a Chinese AI semiconductor company, reported a roughly 21-fold year-on-year surge in revenue in its latest half-year results. Cambricon Technologies and Moore Threads also reported sharp revenue growth, pointing to rising demand for high-performance computing capacity. The backdrop includes a shortage of chips needed to support high-end computing capacity.
The Yuanjing Xinghe Base Intelligent Computing Park in Inner Mongolia is home to one of the world's largest standalone data centers and is designed to support parallel processing capacity on the scale of 1 million AI accelerator cards. The vice president of the Yuanjing AI Computing Power Center said orders are currently fully booked three years out and that the number of customers and order volume are expected to double over the next several years.
The entire industry supply chain, from downstream intelligent computing centers to midstream systems integration and upstream chip design, is being called on to handle a steady stream of incoming orders. The CPO and senior vice president of Taichu (Hangzhou) Integrated Circuit said the number of customers had increased tenfold over the past year, with particularly strong growth in demand from the scientific research and education sectors, while revenue had risen approximately 26% year on year.
The gap between domestic demand for and supply of AI chips is becoming increasingly apparent. Industry estimates indicate that domestic demand in 2026 will reach approximately 4 million units, while actual shipments will total only about 3 million, resulting in a production capacity shortfall of 1 million units.
The half-year results announced in August by domestic AI chipmakers all reported sharp revenue growth, and the entire supply chain, from upstream to midstream and downstream, is expected to remain busy responding to a succession of orders.