China’s AI infrastructure boom fuels earnings surge for local chip firms

China’s AI boom, self-sufficiency push fuel earnings surge for local chip firms

GPU designer MetaX, listed in Shanghai and may soon list in Hong Kong, says it turned a profit in the first nine months thanks to more orders

Chinese chip and tech firms have flagged as much as six-fold growth in unaudited third-quarter profits, as huge demand for home-grown processors and artificial intelligence infrastructure filters through links in the supply chain amid the country’s push for self-reliance.

Shanghai-listed Yuanjie Semiconductor Technology expected its quarterly net profit to land between 403 million yuan and 453 million yuan, up 579 per cent to 660 per cent from a year earlier.

The maker of laser chips for optical communications said data-centre demand was driving shipments and helping maintain high margins.

Some public firms offered a glimpse of their financial performance in the first nine months of the year, ahead of final third-quarter results announcements.