China's Chip Industry Roars Back, but at What Cost? The profit growth of Chinese chip foundries SMIC and Hua Hong in the June quarter was a staggering 261. 7% and 385. 9%, respectively.
This rapid expansion is a direct result of Beijing's industrial might flexing its muscles as tech giants and start ups devour computing power for AI applications.
For years, China has been building up its domestic semiconductor industry with government subsidies and strategic investments fueling the growth of local chipmakers.