China's Chip Revenue Hits Record $245 Billion As SMIC and CXMT Lead the Pack: ETFs to Watch
Key takeaways
- China’s chip industry is booming, with SMIC and CXMT leading a 22% revenue jump to $245 billion, while U.S. export controls may accelerate China’s AI self‑sufficiency.
- China’s IC revenue 2025: $245 billion (+22% YoY)
- SMIC global market share: 5.1%
- CXMT global DRAM share: 7.67%
What happened
China’s integrated circuit industry revenue rose 22% year‑over‑year in 2025 to a record $245 billion, nearly doubling since 2020. SMIC and CXMT are the leading domestic chipmakers, holding 5.1% and 7.67% of the global market respectively. U.S. restrictions on advanced chip exports have accelerated China’s push for AI self‑sufficiency, while U.S. firms like Nvidia and Apple face new export controls.
Why it matters
The jump shows China’s semiconductor sector is rapidly closing the gap left by U.S. export limits, boosting its share of the global market to about 6%. This growth supports China’s AI ambitions and could shift global supply chains. U.S. export controls may backfire by accelerating domestic production in China.
Short-term and longer-term
Short-term. Short‑term traders should watch the Roundhill Memory ETF and KSTR for volatility as U.S.
Longer-term. Longer‑term investors see China’s semiconductor sector as a structural shift toward self‑sufficiency, with SMIC and CXMT poised for continued growth.