Cambricon: China's Emerging AI Chip Leader

Published Date : 26/08/2025 

Cambricon Technologies, a Chinese AI chipmaker, is rapidly gaining traction and is seen as a potential rival to Nvidia. Founded by two brothers, the company is on a mission to develop an AI ecosystem independent of US hardware. 

The hottest company in China right now is Cambricon Technologies, an artificial intelligence chipmaker whose stock has surged about 10-fold over the past two years. This surge is driven by expectations that Cambricon could be a serious challenger to Nvidia in the mainland market.

The frenzy over Cambricon, whose stock is trading at an eye-watering trailing 12-month price-to-earnings ratio above 4,000 – compared to under 60 for Nvidia – reflects a growing belief in China that the country is on a path to develop an AI ecosystem independent from US hardware.

Chinese model developer DeepSeek’s recent suggestion that the country’s “next-generation home-grown AI chips” were just around the corner has ignited enthusiasm about Cambricon’s prospects, analysts said. “The rapid surge in Cambricon’s valuation reflects not just its recent growth but also heavy anticipation of future potential,” said Ray Wang, research director with a focus on the global semiconductor industry at Futurum Group. “This optimism is largely driven by regulatory and geopolitical shifts, strong domestic AI demand, and the latest DeepSeek optimisations for local hardware.”

The company’s core business is the development and design of AI chips for cloud servers, edge devices, and terminals, as well as data-centre clusters. Cambricon is reportedly developing its flagship Siyuan 690, set to succeed the Siyuan 590 series launched in 2023. The new chip is expected to approach the capabilities of Nvidia’s H100.

Cambricon was founded in 2016 by two brothers, Chen Yunji and Chen Tianshi, who are now 42 and 40 years old, respectively. Born in Nanchang, the capital of Jiangxi province, they both went on to work at the Chinese Academy of Sciences (CAS), the country’s top science research agency. Their background in cutting-edge research and development has been instrumental in Cambricon’s rapid rise.

The brothers’ vision and expertise have positioned Cambricon at the forefront of China’s AI revolution. Their goal is to create a robust and independent AI ecosystem that can compete on a global scale. This ambition is not just about economic success but also about reducing dependency on foreign technology, which is increasingly important in today’s geopolitical climate.

As the demand for AI solutions continues to grow, Cambricon is well-positioned to capitalize on this trend. The company’s focus on innovation and its strategic partnerships with leading technology firms in China are key factors in its success. With the development of advanced AI chips like the Siyuan 690, Cambricon is poised to play a significant role in shaping the future of AI technology in China and beyond.

Despite the challenges, including intense competition and regulatory hurdles, Cambricon remains committed to its mission. The company’s relentless drive for innovation and its strong foundation in research and development make it a formidable player in the global semiconductor market. As China continues to invest in AI and related technologies, Cambricon is likely to remain a key player in this dynamic and rapidly evolving industry. 

Frequently Asked Questions (FAQS): 

Q: What is Cambricon Technologies?

A: Cambricon Technologies is a Chinese company that specializes in the development and design of AI chips for cloud servers, edge devices, and data-centre clusters.

Q: Who founded Cambricon Technologies?

A: Cambricon Technologies was founded in 2016 by brothers Chen Yunji and Chen Tianshi, who are both researchers at the Chinese Academy of Sciences.

Q: What is the Siyuan 690 chip?

A: The Siyuan 690 is Cambricon’s flagship AI chip, expected to succeed the Siyuan 590 series and approach the capabilities of Nvidia’s H100.

Q: Why is Cambricon’s stock performing so well?

A: Cambricon’s stock has surged due to expectations that the company could be a serious challenger to Nvidia in the Chinese market, driven by strong domestic AI demand and regulatory shifts.

Q: What is the significance of Cambricon in China’s AI ecosystem?

A: Cambricon is significant in China’s AI ecosystem as it represents the country’s efforts to develop an independent AI technology sector, reducing reliance on foreign hardware. 

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