Shenzhen Inovance 1H revenue 20.51 billion yuan

Shenzhen Inovance 1H revenue 20.51 billion yuan

Baidu's semiconductor design subsidiary, Kunlunxin, has secured over 1 billion yuan in orders from China Mobile. This significant milestone underscores China's push for domestic alternatives to foreign technology, particularly in the AI chip sector. The partnership is expected to drive growth for Kunlunxin and further solidify Baidu's position in the Chinese tech industry.

The deal, announced on July 2, 2025, is part of China's broader strategy to reduce dependence on foreign technology, especially in critical sectors like artificial intelligence. Kunlunxin, backed by Baidu, which owns 59% of the company, will supply AI chips compatible with Nvidia's CUDA platform to first-tier suppliers of China Mobile, including H3C Technologies and ZTE. This strategic partnership is notable for its potential to ease the transition for developers from Nvidia's products, given the high compatibility of Kunlunxin's chips with the CUDA ecosystem [1].

Baidu has been making substantial strides in AI chip development. In April, the company successfully deployed a cluster of 30,000 self-developed, third-generation P800 Kunlun chips, capable of supporting the training of AI models comparable to those developed by Chinese AI startup DeepSeek [1]. This technological advancement highlights the potential of domestic chip designs and positions Baidu and Kunlunxin as key players in the AI chip market.

The success of Kunlunxin and other Chinese chip designers could have significant implications for the global AI chip industry, currently dominated by Nvidia. As Chinese firms improve their chip designs and compatibility with existing software platforms, they may increasingly challenge Nvidia's market position, particularly within China and potentially in other markets seeking alternatives to US-based technology [1].

This development occurs against the backdrop of ongoing technological competition between the United States and China. As restrictions on high-end chip exports to China tighten, the success of domestic chip designers like Kunlunxin becomes increasingly important for China's technological ambitions, especially in the field of artificial intelligence [1].

References:
[1] https://theoutpost.ai/news-story/baidu-s-chip-design-unit-kunlunxin-secures-139-million-in-orders-from-china-mobile-suppliers-19424/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3UE03K:0-baidu-backed-chip-designer-kunlunxin-wins-millions-of-yuan-worth-of-china-mobile-orders/