August 18, 2026, (Inside AI) — VeriSilicon, a Chinese semiconductor design firm, reported first-half revenue of RMB1.864 billion, a 91.37% jump from the same period last year. Orders on hand reached RMB12.449 billion as of June 30.
AI-computing-related orders made up about 90% of new orders signed this year. That concentration signals how deeply AI infrastructure demand now drives the company's chip-design business.
The surge reflects China's aggressive push to build domestic AI computing capacity. VeriSilicon benefits from a wave of orders for custom silicon tailored to AI workloads, from data center accelerators to edge inference chips.
VeriSilicon operates as a chip design service provider, not a fab. It licenses IP cores and offers custom ASIC design, helping clients build specialized processors. This model positions it as a picks-and-shovels play on AI infrastructure spending.
The 90% figure is striking. It suggests that nearly all new business now comes from AI-related projects, leaving little diversification. That concentration could amplify risk if AI spending cools or if geopolitical restrictions tighten further.
China's semiconductor industry faces export controls on advanced manufacturing equipment and high-end GPUs. VeriSilicon's design work may rely on older process nodes or domestic foundries like SMIC, which limits performance but ensures supply chain resilience.
Industry analysts note that Chinese AI chip startups, such as Biren Technology and Cambricon, have struggled with manufacturing constraints. VeriSilicon's role as a design partner could help these firms iterate faster on architectures that work within available process technologies.
The revenue jump of 91.37% is dramatic but comes from a relatively small base. VeriSilicon's first-half revenue of RMB1.864 billion is roughly $260 million, still modest compared to global leaders like Arm or Synopsys.
Order backlog of RMB12.449 billion provides visibility. That is more than six times first-half revenue, suggesting strong future growth if execution holds. However, backlog can include long-term contracts that may be delayed or canceled.
VeriSilicon did not disclose profit figures in the initial report. Rapid revenue growth in semiconductor services often comes with high R&D costs, which can compress margins. Investors will watch for profitability trends in the full earnings release.
The company's stock has been volatile amid broader China tech sector swings. AI infrastructure spending remains a bright spot, but regulatory and trade tensions create uncertainty for companies with global customer exposure.
VeriSilicon's customer base includes both Chinese and international clients. The 90% AI order share suggests that even traditional customers are shifting toward AI-optimized designs, reflecting a global trend in chip customization.
Competitors in the custom ASIC space include Alchip and Global Unichip. These Taiwan-based firms also report strong AI-related demand, indicating that the boom is regional and not limited to mainland China.
The concentration on AI orders raises questions about sustainability. AI chip demand is currently insatiable, but history shows that semiconductor cycles can turn quickly. VeriSilicon's backlog may cushion a downturn, but only if customers honor commitments.
China's push for self-sufficiency in AI chips is a national priority. Government subsidies and procurement policies favor domestic design firms, giving VeriSilicon a tailwind that may persist for years.
VeriSilicon's IP portfolio includes GPU, NPU, and VPU cores. These are critical building blocks for AI accelerators. The company's ability to license these cores accelerates time-to-market for clients who lack in-house design expertise.
The report from 21 Finance highlighted the AI order concentration as a key metric. It underscores how AI infrastructure has become the primary demand driver for China's semiconductor design ecosystem.
Looking ahead, VeriSilicon's growth trajectory depends on execution and macro conditions. If AI infrastructure spending continues at current pace, the company could double revenue again. But any slowdown in China's AI buildout would hit disproportionately hard given the 90% concentration.
For now, VeriSilicon stands as a bellwether for China's AI chip ambitions. Its order book and revenue growth offer a real-time read on how aggressively Chinese companies are investing in custom silicon for AI.
