Summary of Key Points
In the first half of 2026, the A-share electronics industry delivered the “strongest mid-year report in history” driven by the AI boom: 518 companies reported a combined revenue of 2.65 trillion yuan and a net profit of 258.7 billion yuan, both setting new records for the same period. The growth rates in revenue, net profit, and net profit after deducting non-recurring items led the entire industry. The demand for AI is the core driving force, with semiconductors (especially memory chips), PCBs, and AI computing hardware contributing significantly to the growth. The industry structure has shifted from “panel assembly” to “storage and computing power.” However, there is a clear internal divergence, with traditional sectors such as optoelectronics lagging behind in growth, and some companies relying on non-core revenues for their profits.
I. Outstanding Performance: Record Highs in Revenue and Profit, Leading the Industry in Growth Rates
The electronics industry’s performance in the first half of the year can be described as explosive:
- Record Highs in Scale: Revenue reached 2.65 trillion yuan (an increase of 727 billion yuan compared to the same period last year), and net profit was 258.7 billion yuan (up from 87.7 billion yuan last year), with net profit after deducting non-recurring items at 219.2 billion yuan (up from 72.5 billion yuan), all setting new highs for the same period.
- Leading Growth Rates: The revenue growth rate was 37.84% (6 percentage points higher than the second-ranked sector, non-ferrous metals), the net profit growth rate was 195% (almost tripling), and the net profit after deducting non-recurring items was 202%, ranking first among the 31 industries.
- Enhanced Industry Position: The electronics industry’s revenue contribution to the total A-share market increased from 5.49% to 7.03%, and its profit contribution rose from 2.93% to 7.23%, indicating a significant improvement in profitability.
- Comparison with Historical Peaks: 2021 was the last peak for the electronics industry; the mid-year report showed revenue of 1.18 trillion yuan and profit of 96 billion yuan. This year’s revenue is 2.2 times and the profit is 2.7 times that of 2021, far outpacing previous levels.
II. AI as the Core Driver: The Industry Shifting from “Panel Assembly” to “Storage and Computing Power”
The fundamental reason for this growth is the surge in AI demand, which has led to a major reshuffle in the industry structure:
- Demand Drivers: Global AI infrastructure construction (e.g., cloud service providers purchasing AI servers) has boosted the demand for computing chips, memory chips, and high-speed PCBs. In simple terms, AI requires substantial hardware support, and the electronics industry produces these components.
- Shift in Industry Leaders: Six years ago (2020), the top ten companies in the electronics industry were Foxconn (assembly), BOE (panels), and Luxshare Precision (consumer electronics). Now, the top ten include ChangXin Technology (memory), SMIC (chip manufacturing), and Jiangbolong (memory)—a direct reflection of the shift towards core computing components in the AI era.
- Market Value Expansion: There are now 44 companies in the electronics industry with a market value of over 100 billion yuan, 3 with a market value of over 1 trillion yuan (ChangXin, Foxconn, SMIC), and 8 with a market value of over 300 billion yuan (Cambricon, Hygon Information), indicating market recognition of the value of AI hardware.
III. Semiconductors as the Biggest Winners: The Memory Supply Chain Shows Strong Growth in Both Volume and Price
Semiconductors, particularly memory chips, have been the driving force behind the electronics industry’s growth:
- Overall Semiconductor Growth: 186 semiconductor companies reported revenue of 590 billion yuan (a 67.5% increase) and a net profit of 160.5 billion yuan (a 607% increase)—a sixfold increase in profit!
- Memory Chips’ Dramatic Profit Growth: The demand for AI servers has led to a shortage of memory chips, resulting in rising prices and increased sales volumes. For example:
- ChangXin Technology: Lost 2.3 billion yuan last year but earned 77.6 billion yuan this year.
- Jiangbolong: Had a profit of 0.15 billion yuan last year but 10.5 billion yuan this year (a 700-fold increase).
- Demingli and Baiwei Memory: Went from losses to profits, earning 6 billion yuan and 7.1 billion yuan respectively.
- Benefit from Other Segments: PCBs have also seen growth, with leading companies reporting a 35.7% increase in revenue and a 65.6% increase in profit due to AI server demand. Foxconn’s AI server revenue increased by 2.3 times, driving a 96% increase in overall profit.
IV. Not All Is Bright: Some Segments Lagging, and Some Companies Rely on Non-Core Revenues
Not all segments within the electronics industry are performing well:
- Traditional Segments Falling Behind: The optoelectronics sector (e.g., panels) saw only a 1.9% increase in revenue and a 21.4% decrease in net profit after deducting non-recurring items, due to their low relevance to AI and poor cyclical performance.
- Companies’ Profit Quality: Some semiconductor companies’ profits do not come from their core businesses. For example:
- SMIC reported a net profit of 2.8 billion yuan, but only 1.1 billion yuan after deducting non-recurring items, with 60% of the profit coming from stock sales.
- Saiwei Electronics reported a net profit of 2.7 billion yuan but a loss of 379 million yuan after deducting non-recurring items, relying entirely on non-core revenues.
- Jiehuate experienced revenue growth but continued to lose 520 million yuan, indicating issues with its core business.
Conclusion
The electronics industry’s explosive growth in the first half of 2026 is a reflection of the AI era, with AI demand driving the sales of core hardware (memory and computing chips) and the industry transitioning from low-end assembly to high-end computing power. However, not all companies will benefit from the AI trend. Traditional sectors and those relying on non-core revenues may face challenges. Whether the industry can maintain its growth in the future depends on the stability of AI demand and the progress of domestic substitution.