Chinese chipmakers posted record profits in 2025 despite slipping margins, as U.S. shipments fell 34% and Beijing stepped up local chipmaking efforts

Major U.S. chip tool makers still generated billions from China in fiscal 2025, even as direct shipments from the U.S. to China fell sharply.

Chinese equipment vendors such as Naura, AMEC, Piotech and ACM Research posted record revenue growth.

But intense price competition in China squeezed profitability, with gross margins coming under pressure.

More shipments are being rerouted through Singapore and Malaysia, showing how supply chains are adapting to export controls.