Jakarta, INTI – Shanghai-based semiconductor design firm Montage Technology has reported a dramatic increase in profit and revenue for the first quarter of 2025, reinforcing China’s growing role in the global memory chip supply chain amid ongoing tech tensions with the United States.
AI Demand, DDR5 Surge Drive Strong Performance
Montage Technology posted a net profit of 525 million yuan (US$72 million) for the March quarter, up 135.14% year-on-year, while revenue climbed 65.78% to 1.21 billion yuan (US$166 million). The company credited the surge to rising demand from the artificial intelligence sector, particularly for DDR5 dynamic random-access memory (DRAM) chips used in data centers and high-performance computing.
The company’s DDR5 and Register Clock Driver (RCD) chips have seen sharp increases in shipments. Montage is currently one of only three global suppliers of DDR5 connector chips, alongside Japan’s Renesas Electronics and US-based Rambus—underscoring China's critical role in this segment of the semiconductor market.
While based in China, most of Montage’s customers are located overseas, according to its 2024 annual report. This illustrates China’s expanding footprint in global chip supply chains, even as it faces mounting export controls and restrictions from Washington.
A Wider Pattern of Growth in Chinese Semiconductor Industry
Montage is not alone in its impressive performance. Beijing-based Cambricon Technologies, a leading domestic supplier of AI chips, reported a staggering 4,230% increase in first-quarter revenue, totaling 1.11 billion yuan. These gains come as Chinese tech firms work to reduce dependence on foreign technology in the face of tightening US export rules.
Other companies, such as Shanghai-based Advanced Micro-Fabrication Equipment and Naura Technology Group, have also reported strong sales growth. Naura projects a 51% year-on-year rise in Q1 revenue, while Advanced Micro-Fabrication saw full-year revenue in 2024 rise by 44.73%. Notably, Advanced Micro-Fabrication CEO Gerald Yin Zheyao renounced his US citizenship to reclaim his Chinese nationality—a symbolic move amid the tech decoupling narrative.
Conclusion: China Strengthens Its Semiconductor Position Despite US Pressure
Montage’s booming profits and China’s broader semiconductor surge reflect a strategic pivot toward tech self-sufficiency and supply chain resilience. While US-led sanctions continue to target advanced chip exports, Chinese firms are not just adapting—they’re growing rapidly and making bold moves to secure their place in global tech ecosystems. The rise of AI and next-gen memory standards like DDR5 may provide further momentum for China’s chip ambitions in the years ahead.
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