Kingsemi Co Ltd and the Semiconductor Industry: A Financial Overview

Kingsemi Co Ltd, a Chinese company listed on the Shanghai Stock Exchange, has been closely associated with the semiconductor industry’s recent developments. As of August 5, 2025, Kingsemi’s close price stood at 114.65 CNY, with a 52-week high of 121.8 CNY on July 28, 2025, and a low of 56.18 CNY on August 28, 2024. The company boasts a market capitalization of 23,076,499,159 CNY and a price-to-earnings ratio of 120.49282.

Industry Developments and ETF Performance

The semiconductor sector has seen significant interest, particularly in the context of AI-driven demand. On August 5, 2025, the Shenzhen ChiNext Semiconductor ETF (588170) experienced a notable increase, rising by 0.19% to a price of 1.07 CNY. Over the two weeks leading up to August 4, 2025, the ETF saw a cumulative increase of 4.22%. This growth is attributed to the AI industry’s resurgence, driven by a substantial increase in inference demand, which has, in turn, boosted overall computational power requirements.

AI Industry Impact

The AI sector’s expansion has been marked by a significant increase in inference power consumption, with inference power demand absorbing training power demand and further driving total power demand growth. Data from Wall Street Wisdom, citing data from Volcano Engine, indicated that as of May 2025, the daily token usage of large models exceeded 1.64 trillion, a 137-fold increase from the previous year. Google’s data revealed that in April 2025, the total number of tokens processed monthly exceeded 48 billion, a 50-fold increase from April of the previous year.

Supply Chain and Capital Expenditure

The demand surge in AI has led to a gap in high-end production capacity, particularly affecting the supply of printed circuit boards (PCBs), a crucial component of AI hardware supply chains. The demand from NVIDIA GPUs and various cloud manufacturers’ custom ASICs has intensified this gap, with supply constraints expected to persist into 2026. This scenario presents a favorable outlook for PCB companies, with expectations of simultaneous increases in both quantity and price.

Kingsemi’s Strategic Moves

In line with industry trends, Kingsemi and its peers have been proactive in adjusting to the evolving market dynamics. For instance, Xinyuan Microelectronics (688037), a company within the same sector, announced an increase in its 2025 daily related-party transaction quota to 7.18 billion CNY. This adjustment, approved during an August 4, 2025, board meeting, reflects the company’s response to actual procurement needs and market conditions, ensuring transactions are conducted at market prices and in the best interest of the company and its shareholders.

Conclusion

The semiconductor industry, with companies like Kingsemi at the forefront, is navigating a period of significant transformation driven by AI advancements. The increased demand for computational power and the subsequent supply chain adjustments underscore the sector’s dynamic nature. As the industry continues to evolve, companies that adapt to these changes and strategically position themselves are likely to emerge as key players in the semiconductor landscape.