- Military supplier expands into power-management chips for AI infrastructure
- Strong debut highlights investor appetite for China’s analog semiconductor industry
Shares of Chinese analog chipmaker Semitech (展芯半导体) surged more than 400% in their first day of trading on Shenzhen’s ChiNext board, underscoring investors’ growing enthusiasm for companies positioned to benefit from the expansion of AI infrastructure.
The company opened at 108 yuan ($16) on August 7, more than four times its initial public offering price of 23.45 yuan. By the close of the morning trading session, shares stood at around 118 yuan, giving the firm a market cap above 48 billion yuan.
Founded in 2018 and based in Nanjing, Semitech specializes in highly reliable analog integrated circuits and power modules used in applications ranging from aircraft and missiles to naval and land-based systems.
From defense to data centers
The company’s product portfolio includes DC-DC converters, low-dropout regulators, load switches and current-limiting devices. It is also expanding into signal-chain semiconductors.
Its customer list includes major Chinese state-owned defense groups, including subsidiaries of China Electronics Technology Group Corp., China Electronics Corp., Aviation Industry Corp. of China and China Aerospace Science and Industry Corp.
Revenue reached 639 million yuan in 2025, up from 466 million yuan in 2023, while net profit rose to 228 million yuan.
The company is now seeking to broaden its reach beyond military applications and into AI infrastructure, developing products designed for power systems used in computing accelerator boards.
AI drives a recovery
The timing may prove favorable.
Global analog chipmakers, including Texas Instruments, STMicroelectronics, NXP Semiconductors and ON Semiconductor, all reported sequential revenue growth during the second quarter of 2026, suggesting that demand is recovering after a prolonged downturn.
As investment in AI infrastructure accelerates, attention is expanding beyond graphics processors and high-bandwidth memory to supporting technologies such as power-management chips and signal-processing components.
Companies with expertise in supplying power systems for AI servers are expected to be among the main beneficiaries of that trend.
Why investors are paying attention
Semitech’s strong market debut illustrates how investors are reassessing the prospects of China’s domestic analog semiconductor industry.
The company’s experience supplying components for the defense sector has given it expertise in reliability, durability and system integration—capabilities that are increasingly valuable in civilian markets such as AI computing.
Despite rapid growth in recent years, domestic suppliers remain relatively underrepresented in key areas of the analog chip industry.
In automotive electronics, for example, locally produced components account for only a small share of the market.
For investors, the company’s listing offers another indication that China’s drive toward semiconductor self-sufficiency is extending beyond processors and memory chips to the less visible components that keep modern computing systems running.
