In the first quarter of 2025, the company posted revenue of RMB 1.111 billion (USD 155.5 million), representing a 4,230.2% year-on-year jump. Net profit reached RMB 355 million (USD 49.7 million), reversing a loss of RMB 227 million (USD 31.8 million) from the same period a year earlier.
Cambricon’s recent momentum comes as China accelerates efforts to strengthen its domestic semiconductor sector. The company’s Siyuan chips have gained traction following the US government’s ban on Nvidia’s H20 exports to China, creating an opening for local alternatives.
Still, the strong results have not quieted concerns. This marks only the second profitable quarter since Cambricon’s IPO, and challenges remain. Operating cash flow fell sharply, and the company continues to rely heavily on a small group of clients. Competition is also intensifying, with rivals such as Loongson and Huawei introducing products aimed at similar markets.
Founded in 2016, Cambricon initially gained attention for co-developing one of the first artificial intelligence-enabled mobile chipsets with Huawei. But after Huawei exited the partnership, Cambricon struggled to diversify its client base while grappling with high R&D spending. Its IPO provided much-needed capital, though the fundamentals lagged behind.
In 2022, Cambricon was added to the US export control list, cutting it off from advanced chip production at top-tier foundries like TSMC. That move dealt a heavy blow. Revenues dropped and the company became the subject of scrutiny in Chinese media.
Rather than retreat, Cambricon expanded its product offerings beyond mobile to a broader range of computing scenarios, including cloud and edge applications. Its rebound gained traction in 2024, when its stock performance temporarily outpaced Nvidia’s.
Signs of upcoming expansion are there: the company disclosed inventories of RMB 2.755 billion (USD 385.7 million) and prepayments of RMB 973 million (USD 136.2 million), indicating that more orders may be coming.
Cambricon’s progress is unfolding amid a broader reordering of China’s chip sector. With international supply chains under pressure, domestic firms are moving quickly to plug the gaps. DeepSeek, a foundational AI company, is helping to unlock downstream demand, while inference workloads—an area less dependent on ultra-advanced processors—are proving to be a strong match for China-made chips.
By early 2025, major players including Huawei, Biren, Moore Threads, and Hygon had launched DeepSeek-compatible products. Cambricon’s return to profitability places it back in the conversation, though whether it can maintain that position is an open question.
Cash constraints, fierce competition, and an uncertain customer mix will shape its next steps. But for now, Cambricon’s latest results offer a glimpse into what a locally driven AI chip sector might look like under pressure.