Semiconductor H1 2026 Investments RMB 162.7 Billion, AI Overtakes by Nearly RMB 20 Billion

In the first half of 2026, the semiconductor sector completed 912 financing rounds involving 823 companies, with a total amount of RMB 162.7 billion. During the same period, the artificial intelligence (AI) sector saw 885 financing rounds for 773 companies, with total investment of RMB 181.2 billion. Semiconductor investment was overtaken by AI by nearly RMB 20 billion, marking the first change since 2020 when semiconductor became the largest private-market sector.

In 2020, semiconductor investment volume first matched information services, and by 2021 it became the sector with the most private-market deals. In 2025, semiconductor investment reached 1,434 rounds totaling RMB 203.108 billion, while AI recorded 891 rounds totaling RMB 64.398 billion. In the first half of 2026, the gap in deal volume between the two narrowed further, and large AI transactions, such as specific financing projects, directly pushed up the overall amount.

Within semiconductor sub-sectors, chip design received 358 investments, ranking first; electronic components received 118, semiconductor equipment 78, sensors 57, packaging and testing 50, materials 44, and wafer fabrication 15. The investment logic for chip design has shifted from domestic substitution to domestic advancement and autonomous restructuring of AI computing power. Companies such as Yixing Intelligent received financing, including a RMB 1.5 billion Series B round in April 2026, followed by strategic investment.

Geographically, Shanghai led with 122 funded companies, followed by Shenzhen with 99, Suzhou with 87, Beijing with 83, and Hangzhou with 62. Among the top ten investment cities, six are located in the Yangtze River Delta. Shanghai Xinsheng received RMB 11.448 billion for 300mm wafer capacity expansion, accounting for 7% of the sector's total financing in the first half of 2026. In Hefei, CXMT advanced its IPO, and Shenji Technology obtained RMB 2.257 billion in its first funding round, with investors including Hefei Guotou and IDG Capital. Wuhan and Chengdu had 33 and 26 funded companies, respectively.

Industrial investors have become the dominant force in semiconductor investment. Xinlian Advanced was established as a joint venture between SMIC Integrated and the Shaoxing local government, with a total project investment of about RMB 20 billion for a 12-inch automotive-grade chip production line. Rongxin Semiconductor received investment from industrial players such as Beijing Junzheng, Xinhui, and Omnivision. SMIC Capital invested in 33 companies in the first half, 16 of which were semiconductor firms; SMIC Capital (as a separate entity) invested in 14, with 7 being semiconductor companies. Omnivision invested in 7 companies in the first half of 2026, 6 of which were semiconductor firms, making it an active investor. Market-oriented institutions such as Hillhouse Capital and CASSTAR were active, with Shenzhen Capital Group making 46 investments, ranking as the most active investor.