CNBC·2025-08-27 10:07Core Insights - Cambricon, a Chinese semiconductor firm, reported record profits in the first half of the year, indicating the growing competition against Nvidia as China aims to enhance its domestic semiconductor industry [1][2] Financial Performance - In the first half of the year, Cambricon's revenue surged over 4,000% year-on-year to 2.88 billion Chinese yuan (approximately $402.7 million), while net profit reached a record 1.04 billion yuan [2] - Despite the impressive growth, Cambricon's figures are still modest compared to Nvidia, which reported $44 billion in revenue for its February to April quarter [2] Market Dynamics - The significant revenue increase for Cambricon reflects the ongoing search by Chinese tech companies for alternatives to Nvidia, especially in light of potential restrictions on access to American technology [3] - Earlier this year, Nvidia faced a ban on selling its H20 chip to China, although it has since been allowed to resume exports under the condition of sharing 15% of its revenue from sales to China with the U.S. government [3] - Reports indicate that China is discouraging local firms from purchasing Nvidia's H20 chips, further emphasizing the push for domestic alternatives [4]