Chinese AI chipmakers are showing contrasting financial results in the first half of 2026, with MetaX Integrated Circuits and Iluvatar Corex moving into profitability, while Biren Technology significantly narrows its losses, reflecting the varied impact of Beijing’s drive for semiconductor self-reliance and AI infrastructure expansion.
- MetaX swings to a 612 million yuan profit after heavy losses in 2025
- Iluvatar reverses losses with 106 million yuan net profit and booming revenue
- Biren cuts losses sharply but remains unprofitable despite revenue surge
What happened
China’s domestic AI chipmakers revealed divergent financial performances for the first half of 2026. MetaX Integrated Circuits reported a net profit of 612 million yuan (US$90.9 million), reversing a loss of 186 million yuan the previous year, driven by increased GPU shipments and broad customer adoption. Iluvatar Corex also posted a net profit of 106 million yuan, a dramatic turnaround from a previous 609 million yuan loss, with revenue surging over 190%.
In contrast, Biren Technology, while still posting a net loss of 377 million yuan, significantly narrowed its losses from 1.6 billion yuan a year earlier. Biren experienced a nearly 2,000% increase in half-year revenue to 1.24 billion yuan due to heightened demand for general-purpose GPUs amid increased AI token consumption and system-level competition.
Why it matters
These financial results illustrate the growing maturity and market reception of Chinese GPU developers, fueled by Beijing’s policy push for semiconductor self-reliance and a major AI infrastructure buildout. MetaX and Iluvatar’s profitability signals the potential for domestically developed GPUs to challenge international competitors, especially Nvidia, in the AI chip market.
The mixed outcomes also highlight ongoing challenges in balancing rapid growth with profitability in the AI semiconductor sector. Biren’s soaring revenue paired with continued losses reflects the intense capital demands for innovation and scaling in this competitive and strategic industry, which remains under pressure from U.S. export controls and other geopolitical factors.
What to watch next
Market watchers will be closely following MetaX’s impending move to list in Hong Kong, expected by year-end, which could unlock additional capital and broaden investor access to China’s AI chip sector. This move might accelerate MetaX’s growth and solidify its position as a leading GPU designer in China.
At the same time, how Biren and Iluvatar navigate their paths toward sustained profitability and innovation in an aggressively competitive landscape will be critical. The wider industry’s shift between general-purpose GPUs and application-specific integrated circuits (ASICs) championed by other domestic semiconductor players will be an important factor influencing future market leadership.