Is China Resources Microelectronics profitable?

Yes but margins are thinning. FY2025 revenue hit RMB 11.05 billion (+9.24% YoY) while net profit fell to RMB 660.54 million, down 13.37% YoY, as of 2025-12-31, per Quartr data reported 2026-04-25.

Who owns China Resources Microelectronics?

CR Micro is a subsidiary of state-owned conglomerate China Resources (Holdings), which reported 2023 group revenue of US$126.2 billion and ~394,000 employees. CR Micro itself trades publicly on Shanghai's STAR Market under ticker 688396.

Is CR Micro on the US Section 1260H sanctions list?

Not as of the June 2026 update. The US Department of War expanded the 1260H Chinese military companies list to 188 entities (adding Alibaba, Baidu, BYD, WuXi AppTec) effective 2026-06-30, but CR Micro was not named on that list per a 2026-07-27 legal analysis.

Who is CR Micro's biggest competitor?

Domestically, Silan Microelectronics is the sharpest rival: Silan disclosed a planned 12-inch advanced analog IC fab in Xiamen in March 2026, a technology step CR Micro has not publicly matched, while Hua Hong, Yangjie, and NCE Power also contest its foundry and pricing position.

Could AI replace CR Micro's business?

No, its core business is physical wafer and device manufacturing, which AI cannot substitute. Instead, AI is a demand tailwind: UBS research cited 2026-06-28 estimates SiC/GaN power devices could capture 10-15% of Nvidia's 800V 'Kyber' rack power architecture expected in 2027.

Is CR Micro raising prices in 2026?

Yes. Its Chongqing subsidiary joined peers Yangjie, Silan, and NCE Power in raising power-semiconductor prices around 2026-06-25, with industry-wide hikes cited in the 10-15% range, driven by AI data-center, EV, and energy-storage demand.

Semiconductor companies · subsidiary of China Resources (Holdings) Co., Ltd. · China

China Resources Microelectronics

crmicro.com ↗

China's largest state-backed power and analog chip IDM, from discretes to wafers.

Protection under test

Assessed 30 July 2026 · Evidence as of 30 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 30 July 2026 · Checkable from Aug 25, 2026 · Every call on the record Checkpoint: H1 2026 earnings report, testing whether 2026 price hikes actually stick to net margin

The call

Protected at home from foreign rivals, CR Micro's real fight is against other Chinese state-backed chipmakers racing the same capacity buildout, which is squeezing its margins even as revenue grows.

CR Micro makes power semiconductors (chips that control electricity flow) for data centers and electric vehicles, with backing from the Chinese government that keeps foreign competitors like Infineon and STMicroelectronics out of its market. The company is hard to replace at home because it owns real factories and has government support, but it is getting easier to copy because Chinese rivals like Silan and Hua Hong are building their own advanced factories and competing on price, which shrinks profits (the company made 13% less profit in early 2025 even as sales grew 9%). The outcome hinges on whether CR Micro can stabilize its shrinking profit margins when it reports earnings in August 2026, or whether it keeps losing ground to rivals also racing to build next-generation factories.

Why

AI pressure: None apparent. AI data-center buildout is raising demand for its 800V power chips, not replacing its products. Could AI do the core job? Unlikely.

Bigger players: Silan Microelectronics and other domestic power-chip makers (Hua Hong, Yangjie, NCE Power). Silan's Xiamen 12-inch analog fab and rival capacity buildouts threaten to undercut CR Micro's margins before it has an equivalent 12-inch SiC line. Could a giant copy it? Probably.

What protects it. State ownership and export controls keep Infineon and STMicro out of the domestic market it dominates.

What would change this call

Silan Microelectronics Xiamen 12-inch analog fab reaches mass production before CR Micro discloses an equivalent line. Would show CR Micro losing the capacity race to a same-industry domestic rival.
CR Micro net margin in H1 2026 earnings (due Aug 25, 2026) versus FY2025's ~6%. Shows whether 2026 price hikes stick or pricing power keeps eroding despite revenue growth.
US Section 1260H list next expansion cycle including or excluding CR Micro. Would show whether sanctions risk materializes into procurement bans affecting its business.

Key numbers

FY2025 revenue RMB 11.05B, up 9.24% YoY (2025-12-31)
FY2025 net profit RMB 660.54M, down 13.37% YoY (2025-12-31)
Power-chip makers raised prices 10-15% on AI demand (2026-06-25)

Named risks

Possible future addition to US Section 1260H list or equivalent export/procurement ban. Severity: high
Net margin compression from subsidized domestic capacity race among Silan, Yangjie, NCE Power, Hua Hong. Severity: high
No disclosed 12-inch SiC fab while rivals announce mass-production milestones. Severity: medium
China Q2 2026 GDP growth slowed to 4.3%, weakest since pandemic, pressuring domestic demand. Severity: medium
Associate losses dragged Q3 2025 net profit down 14.7% YoY despite revenue growth. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Silan Microelectronics	gaining on	Disclosed planned 12-inch advanced analog fab in Xiamen, March 2026, no CR Micro equivalent announced
Hua Hong Semiconductor	contesting	Second-largest China foundry ramping mature-node/foundry capacity that overlaps CR Micro's foundry business
Yangjie Technology	contesting	Announced 10-15% price hike effective July 2026, matching CR Micro's own pricing moves
NCE Power	contesting	Raised prices alongside CR Micro's Chongqing unit in June 2026 amid tight capacity
Infineon and STMicroelectronics	gaining on	Structurally blocked from China's state-directed procurement, giving CR Micro domestic shelter

Questions people ask

Is China Resources Microelectronics profitable?: Yes but margins are thinning. FY2025 revenue hit RMB 11.05 billion (+9.24% YoY) while net profit fell to RMB 660.54 million, down 13.37% YoY, as of 2025-12-31, per Quartr data reported 2026-04-25.
Who owns China Resources Microelectronics?: CR Micro is a subsidiary of state-owned conglomerate China Resources (Holdings), which reported 2023 group revenue of US$126.2 billion and ~394,000 employees. CR Micro itself trades publicly on Shanghai's STAR Market under ticker 688396.
Is CR Micro on the US Section 1260H sanctions list?: Not as of the June 2026 update. The US Department of War expanded the 1260H Chinese military companies list to 188 entities (adding Alibaba, Baidu, BYD, WuXi AppTec) effective 2026-06-30, but CR Micro was not named on that list per a 2026-07-27 legal analysis.
Who is CR Micro's biggest competitor?: Domestically, Silan Microelectronics is the sharpest rival: Silan disclosed a planned 12-inch advanced analog IC fab in Xiamen in March 2026, a technology step CR Micro has not publicly matched, while Hua Hong, Yangjie, and NCE Power also contest its foundry and pricing position.
Could AI replace CR Micro's business?: No, its core business is physical wafer and device manufacturing, which AI cannot substitute. Instead, AI is a demand tailwind: UBS research cited 2026-06-28 estimates SiC/GaN power devices could capture 10-15% of Nvidia's 800V 'Kyber' rack power architecture expected in 2027.
Is CR Micro raising prices in 2026?: Yes. Its Chongqing subsidiary joined peers Yangjie, Silan, and NCE Power in raising power-semiconductor prices around 2026-06-25, with industry-wide hikes cited in the 10-15% range, driven by AI data-center, EV, and energy-storage demand.

Timeline

2026-07-27Legal analysis confirms CR Micro absent from expanded 188-entity US 1260H list
2026-07-10CR Micro stock drops 14.67% in a single trading day
2026-06-30US 1260H procurement ban takes effect covering 188 Chinese entities
2026-06-25CR Micro's Chongqing unit joins Silan, Yangjie, NCE Power in raising prices
2026-04-25FY2025 results reported: revenue RMB 11.05B, net profit down 13.37% YoY
2026-03-31Q1 2026 revenue reaches RMB 2.86 billion, up 21.34% YoY
2026-03-26Rival Silan discloses planned 12-inch advanced analog fab in Xiamen
2025-12-31CR Micro headcount reaches 11,626, up 8.09% year over year
2025-10-30Q3 2025 net profit falls 14.7% YoY on associate losses despite revenue growth
2008Company rebrands from CSMC Technologies Corporation to CR Micro

Revision history

30 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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