In Depth: Cambricon Tops China’s Market as Domestic AI Chip Drive Creates a New Billionaire

Cambricon Technologies Corp. Ltd., a Chinese semiconductor company, has witnessed an extraordinary surge in its stock price, rising 468% over the past year due to China’s strategic push for technological self-sufficiency in response to U.S. sanctions targeting advanced semiconductor access [para. 1]. Since July, Cambricon’s Shanghai-listed shares have soared by more than 130%, at one point surpassing Kweichow Moutai to become China’s most valuable public company with a market capitalization of 579.3 billion yuan ($81 billion)—over 20 times its valuation at its 2020 IPO [para. 2]. The backdrop to this surge is Beijing’s campaign for technological independence and local demand for domestically produced chips as American restrictions tighten. U.S. sanctions greatly accelerated the need for Chinese alternatives, sparking domestic growth for firms like Cambricon [para. 3].

The company’s rapid ascent has led to the creation of China’s first artificial intelligence (AI) chip sector billionaire. Chen Tianshi, the 40-year-old founder, chairman, and general manager, owns just under 30% of Cambricon, amounting to more than 171.6 billion yuan. This catapults him toward the top 10 richest individuals in China, after the Hurun Global Rich List in March 2024 pegged his wealth at 87 billion yuan [para. 4]. However, skepticism surrounds Cambricon’s high valuation. Investors warn that the company’s operational strength, revenue, and profit do not yet justify its inflated market cap, suggesting sentiment is driving valuations more than financial fundamentals [para. 5][para. 6].

Cambricon’s roots trace back to two prodigy brothers, Chen Yunji and Chen Tianshi. Yunji entered the University of Science and Technology of China (USTC) at 14, later joining the Chinese Academy of Sciences’ Institute of Computing Technology (ICT) in 2002. Tianshi followed a similar path, displaying both scholarly rigor and business acumen [para. 7][para. 8][para. 9][para. 10][para. 17]. After earning their Ph.Ds., they focused on AI-driven processor design. Their work won international academic recognition in 2014. The AlphaGo victory in 2016 prompted them to commercialize their research, founding Cambricon that March. As CEO, Tianshi managed corporate operations and eventually ran the company full-time, while Yunji returned to academia [para. 12][para. 13][para. 14][para. 15][para. 16][para. 17].

Cambricon’s early years saw key investments from ICT affiliates and tech firms like Alibaba, iFlytek, and Lenovo. State support was strong, and the company became a major supplier to Huawei, which accounted for nearly all revenue before 2019 [para. 18][para. 19][para. 20][para. 21][para. 22]. However, U.S. sanctions forced Huawei to internalize chip design, severely impacting Cambricon’s income. Reliance shifted to government contracts, which allowed Cambricon to survive and list on Shanghai’s STAR Market in 2020, though dependence on state deals raised concerns [para. 23][para. 24][para. 25].

The turning point arrived in October 2022 when the U.S. cut off AI chip exports, placing Cambricon on its Entity List. While initially the stock suffered, tightened import controls ultimately fueled demand for domestic AI chips. Cambricon shares skyrocketed, driven by the narrative of “domestic substitution.” After acquiring alternative foundry options and strong orders from local cloud companies, Cambricon posted a first-half 2025 revenue increase of 4,347.8% year-on-year to 2.88 billion yuan, and net profit of 913 million yuan—marking a return to profitability as the company’s chips deployed at scale across various sectors [para. 26][para. 27][para. 28][para. 29][para. 30][para. 31][para. 32][para. 33][para. 34].