China semiconductor orders hit record highs as AI demand drives domestic substitution push
Multiple Chinese semiconductor supply chain companies, including Pioneer Precision, Kema Technology, Hengyunchang, and Biwin Storage, reported record order backlogs and strong revenue growth in the first half of 2026, driven by AI demand and domestic substitution efforts. Pioneer Precision's orders surged over 80% year-on-year, while Biwin Storage's AI edge storage revenue jumped 433.58%. Global semiconductor revenue exceeded $425 billion in Q2 2026, up 31.4% quarter-on-quarter, according to Omdia.
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Semiconductor Component Orders Hit Record Highs as Institutions Intensify Research on Domestic Substitution
A surge in institutional investor research activity is focusing on China's semiconductor domestic substitution drive, particularly in advanced process components, memory, and testing. According to Omdia, global semiconductor revenue reached $752 billion in the first half of 2026, with AI demand and memory price increases as core drivers. Pioneer Precision disclosed that its on-hand orders surged over 80% year-on-year by mid-2026, a record high, with ceramic heaters passing top equipment maker validation and small-volume production expected in Q4. Kema Technology reported H1 revenue of 592 million yuan, up 13.8%, and has delivered over 2,000 ceramic heaters. Hengyunchang, a plasma RF power supply leader, noted the domestic substitution rate remains below 12% but its capacity utilization hit 102.46%. In memory and testing, Biwin Storage posted AI edge storage product revenue of 2.86 billion yuan, up 433.58%, supplying Meta, Google, Alibaba, and Xiaomi. TrendForce forecasts Q3 2026 DRAM contract prices rising 13-18% and NAND Flash 10-15%. Morgan Stanley projects the global semiconductor market could reach $1.5 trillion by 2030, with AI semiconductors accounting for about half, providing sustained support for China's domestic substitution efforts.
Read sourceChina Semiconductor Component Orders Surge as AI Drives Demand and Substitution
A Securities Times report highlights surging demand for semiconductor core components in China, driven by AI and memory price increases. Companies like Pioneer Precision, Kemao Technology, Hengyunchang, and Biwin Storage report record order backlogs and progress in domestic substitution. Pioneer Precision's orders grew over 80% year-on-year, with ceramic heaters passing validation. Kemao Technology has delivered over 2,000 12-inch ceramic heaters. Hengyunchang, a plasma RF power supply leader, notes domestic substitution rate is below 12% but its capacity utilization reached 102.46%. Biwin Storage's AI end-side storage revenue surged 433.58%, supplying Meta, Google, and Alibaba. Omdia data shows Q2 2026 global semiconductor revenue exceeded $425 billion, up 31.4% quarter-on-quarter. Morgan Stanley forecasts the global semiconductor market could reach $1.5 trillion by 2030, with AI semiconductors accounting for half. The article concludes that order indicators, validation progress, and overseas breakthroughs point to strong second-half performance for Chinese semiconductor supply chain firms.
Read sourceSemiconductor Core Component Orders Surge as AI Drives Demand and Domestic Substitution
A Securities Times report highlights booming demand for semiconductor core components in China, with companies like Pioneer Precision, Hengyunchang, and Biwin Storage reporting record order backlogs and strong institutional investor interest. Key themes include advanced-process component localization (domestic substitution) and AI-driven demand for storage and testing. Pioneer Precision's orders grew over 80% year-on-year, with ceramic heaters passing top equipment maker verification. Hengyunchang noted domestic RF plasma power supply penetration is under 12%. Biwin Storage's AI end-side storage revenue surged 433.58%, supplying Meta, Google, and Alibaba. Omdia data shows global semiconductor revenue exceeded $425 billion in Q2 2026, up 31.4% quarter-on-quarter, driven by AI and memory price hikes. Morgan Stanley forecasts the global semiconductor market could reach $1.5 trillion by 2030, with AI semiconductors (storage, GPU) accounting for half. The article concludes that order indicators, verification progress, and overseas breakthroughs point to strong second-half performance for domestic supply chain firms.
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Semiconductor supply chain draws heavy institutional research as AI demand and localization drive growth
A surge in institutional investor research is targeting China's semiconductor supply chain, with companies from components to testing and storage reporting strong demand. Pioneer Precision disclosed that on-hand orders surged over 80% year-on-year to a record high by mid-2026. Kema Technology has developed 43 12-inch products and delivered over 2,000 units, breaking through core component technologies for film deposition and laser annealing. Hengyunchang, a plasma RF power system leader, noted the domestic localization rate is below 12%, with its capacity utilization at 102.46% and a new generation product in trial production. In the storage and testing segment, Biwin Storage reported AI edge storage revenue of approximately 2.86 billion yuan in the first half of the year, a 433.58% increase, with products entering AI glasses from Meta, Google, Alibaba, and Xiaomi. Omdia data cited in the article forecasts global semiconductor revenue exceeding $425 billion in Q2 2026, with AI demand and memory price increases as core drivers. Morgan Stanley is also cited for an industry outlook.
Read sourceChina Semiconductor Orders Hit Record Highs as AI Demand Drives Localization Push
A surge in orders for semiconductor core components is driving intensive institutional investor research into China's import substitution efforts. Companies including Pioneer Precision, Hengyunchang, and Biwin Storage reported strong first-half 2026 results, with Pioneer Precision's orders up over 80% year-on-year. Omdia data shows global semiconductor revenue exceeded $425 billion in Q2 2026, up 31.4% quarter-on-quarter, driven by AI demand and memory price increases. Key areas of focus include advanced process component localization, AI-driven storage, and testing. Hengyunchang noted domestic plasma RF power supply localization is below 12%. Biwin Storage reported AI edge storage revenue of 28.6 billion yuan, up 433.58% year-on-year, with products entering supply chains of Meta, Google, Alibaba, and Xiaomi. TrendForce forecasts DRAM contract prices to rise 13-18% and NAND Flash 10-15% in Q3 2026. Morgan Stanley projects the global semiconductor market could reach $1.5 trillion by 2030, with AI semiconductors accounting for half.
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