Chinese Chip Firms Hit Records: CXMT Revenue Surges 130% YoY to $8B; US Controls Accelerate Domestic Demand

CNBC reported on April 3 that China's leading chipmakers posted record revenues in 2025, driven by a combination of AI demand and US export controls forcing Chinese companies to source domestically. ChangXin Memory Technologies (CXMT), China's primary DRAM manufacturer, recorded 130% year-on-year revenue growth to approximately 55 billion yuan (~$8 billion) — a dramatic acceleration reflecting hyperscaler demand for domestically manufactured memory chips as US sanctions blocked access to Samsung and SK Hynix HBM for AI applications. SMIC, China's top foundry, confirmed 2025 revenue of $9.3 billion (+16% YoY), while also reporting growth in advanced packaging capacity for AI chip applications. TrendForce analysts attributed the surge partly to Chinese internet giants front-running anticipated future restrictions by filling domestic chip inventories. The results represent a significant inflection point in China's semiconductor import substitution strategy: while China still imports hundreds of billions in foreign chips annually, domestic chipmakers are now growing fast enough to be competitively relevant in specific market segments — particularly AI inference and DRAM — that were previously dominated by US-allied suppliers.