Chinese semiconductor company Cambricon reported a record first-half profit, signaling the growing influence of local rivals, including Nvidia. This comes as Beijing seeks to develop its own technology industry, according to CNBC.
Cambricon is one of many companies in China competing to become an alternative to US giant Nvidia in the production of chips for training and working with artificial intelligence models.
In the first half of 2025, Cambricon’s revenue grew by more than 4,000% compared to the previous year, reaching 2.88 billion Chinese yuan ($402.7 million), and net profit reached a record 1.04 billion yuan ($145.5 million).
While these figures are still well below Nvidia’s revenue, they demonstrate how Chinese companies are seeking alternatives to American technology due to the persistent threat of trade restrictions.
Earlier this year, Nvidia was banned from selling its simplified H20 chip to China. Although exports have since resumed, the company is now forced to pay 15% of the revenue from those sales to the US government. Meanwhile, China is reportedly urging local firms not to buy H20 chips.
Cambricon’s shares have more than doubled this year, and its market capitalization has increased by more than $40 billion, reaching a total value of about $80 billion.
Nvidia’s Chinese competitors still face many challenges, as their technology lags far behind and export controls restrict access to cutting-edge chip manufacturing methods.