China’s semiconductor equipment sector is entering the first-half earnings season under close examination as a broad stock rally brings attention to one of the tech industry’s less visible areas. The rally has extended to manufacturers of etching, thin-film deposition, cleaning, and testing machines, driven by expectations that China’s upcoming chip investments will favor a broader range of domestic suppliers. Naura Technology Group’s shares have surged over 70% this year, with competitors like Advanced Micro-Fabrication Equipment, Piotech, and Hwatsing Technology more than doubling in value. Other companies, such as Kingsemi, Hangzhou Changchuan Technology, Accotest, Skyverse Technology, and Wuhan Jingce Electronic Group, have also benefited from the market enthusiasm. The key question is whether these earnings results will justify the significant re-evaluations. Investors are looking for evidence that the expansion in memory chips, the transition to advanced packaging, and Beijing’s push for self-reliance are leading to substantial orders, revenue growth, and sustainable profit margins. A group of 14 major Chinese chip equipment firms reported combined revenues of 90 billion yuan in 2025, marking a 35% increase year-on-year. In the first quarter of 2026, revenues rose by 32% to 21.78 billion yuan, while net profits increased by 61% during the same period.
Can China’s chip equipment rally withstand the earnings test amid the memory boom?
