China chip earnings boom masks widening gap between AI processor demand and fading memory gains
Chinese semiconductor and computing hardware companies reported or forecast strong earnings growth in the first nine months of 2026, driven by AI infrastructure investment and demand for domestic processors. However, DRAM and NAND price gains are fading, widening the gap with AI accelerator demand.
- Nine-month 2026 revenue growth was driven by AI infrastructure and domestic processors
- AI accelerator demand is outpacing DRAM and NAND price gains
- Chinese chip toolmakers are investing in hybrid bonding
- TSMC locked in 3-6% wafer price hikes for 2027
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