Is VeriSilicon profitable in 2026?

No. VeriSilicon posted a net loss of RMB -319.8 million in H1 2025, and despite Q1 2026 revenue growing 114.47% year over year to RMB 835.74 million, the company's net loss widened further, per its Q1 2026 disclosure dated 2026-04-30.

What is VeriSilicon's biggest competitor?

Globally, Arm Holdings, Synopsys, and Cadence Design Systems dominate semiconductor IP with roughly 70-75% combined market share, but US export controls partly block them from Chinese customers, leaving VeriSilicon as China's top domestic IP vendor as of 2020 rankings cited in a 2020-06-24 interview.

Could AI replace VeriSilicon's business?

Unlikely soon. AI-computing and data-processing orders each exceeded 90% of VeriSilicon's new order intake between January and July 2026 (RMB 8.24B plus RMB 6.413B), making AI demand a revenue tailwind rather than a threat, since AI tools cannot tape out chips or hold automotive safety liability.

Who owns VeriSilicon?

VeriSilicon is a public company trading on the Shanghai STAR Market under ticker 688521.SH since its August 18, 2020 IPO, which raised about RMB 1.86 billion; founder Dr. Wayne Wei-Ming Dai, who started the company on August 21, 2001, remains Chairman and CEO.

Could a US Entity List designation hurt VeriSilicon?

Yes, this is flagged as an existential tail risk. On 2026-07-09 the US Commerce Department (BIS) announced strengthened export controls restricting China's capability to produce advanced semiconductors; no evidence VeriSilicon itself is currently listed, but the sector faces escalating scrutiny.

How fast is VeriSilicon's order backlog growing in 2026?

Very fast per company disclosure: new orders totaled RMB 8.24 billion from January 1 to April 29, 2026, and a further RMB 6.413 billion from April 30 to July 16, 2026, with AI-computing and data-processing orders each exceeding 90% of the total, per a 2026-07-16 report.

Semiconductor companies · China

VeriSilicon

verisilicon.com ↗

Chinese chip IP licensor and silicon design partner for AI and auto chips.

Losing its protection

Assessed 24 July 2026 · Evidence as of 24 July 2026

The structural protection is eroding.

On the recordSince 24 July 2026 · Checkable from Q3 2026 · Every call on the record Checkpoint: Q2/Q3 2026 earnings show whether record AI order backlog narrows losses or losses widen again

The call

VeriSilicon's order book is exploding on AI demand while it still loses money, and its main protection is a US export wall it does not control.

VeriSilicon designs computer chips and sells design tools and services, mostly to Chinese customers who cannot buy from Western competitors like Arm and Synopsys because of US trade restrictions. The company owns thousands of proprietary designs and has deep relationships with chip factories, making it hard to replace, but it is not yet profitable, even though sales jumped 114% in early 2026 and orders are surging. The biggest threat is not a rival company but geopolitical: if the US adds VeriSilicon to a trade blacklist, it could lose access to the software and factories it depends on, which would be catastrophic.

Why

AI pressure: AI-assisted EDA tools (Synopsys.ai, Cadence Cerebrus). AI design tools could squeeze service margins later, but right now AI chip demand is filling VeriSilicon's order book, not eating it. Could AI do the core job? Unlikely.

Bigger players: Arm Holdings, Synopsys, Cadence Design Systems. These three hold ~70-75% of global chip IP, but US export rules bar them from serving VeriSilicon's core Chinese customers. Could a giant copy it? No, they are blocked.

What protects it. US export controls keep Arm, Synopsys, and Cadence out of key Chinese accounts, while 1,700+ owned IPs and ISO 26262 certs lock in customers.

What would change this call

VeriSilicon's Q2/Q3 2026 earnings report on net loss trend. Shows whether AI order backlog converts to narrowing losses or losses keep widening.
US BIS Entity List action naming VeriSilicon. Would cut foundry and EDA tool access, threatening the whole business model.
Public disclosure of any major AI order cancellation by a VeriSilicon customer. Would signal the 2026 AI order surge is not converting into durable revenue.

Key numbers

Q1 2026 revenue up 114.47% YoY to RMB 835.74 million (2026-04-30)
New orders RMB 6.41B (Apr-Jul 2026), 90%+ AI-related (2026-07-16)
FY2025 revenue RMB 3.15B, up 35.77% YoY (2026-03-30)

Named risks

BIS Entity List designation could sever VeriSilicon's foundry and EDA access. Severity: high
Net losses widened in Q1 2026 despite 114% revenue growth, unproven AI-order profitability. Severity: high
Stock extremely volatile (52-week range RMB 44-376), exposed to sentiment reversal on bad earnings. Severity: medium
Domestic Chinese EDA rivals Empyrean and Primarius pressuring design-service pricing. Severity: medium
Conflicting headcount data (2,021 company filing vs 1,873 Revelio estimate) raises data-quality questions. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Arm Holdings	losing to	Arm stock doubled in 2026 on AGI CPU launch and AI royalty demand, per 2026-05-19 report
Synopsys	contesting	Blocked from key Chinese customers by US export controls, giving VeriSilicon structural edge domestically
Cadence Design Systems	contesting	Same export-control barrier as Synopsys limits its access to VeriSilicon's core China market
Empyrean and Primarius	gaining on	Chinese EDA rivals pressuring pricing and innovation in Asia design-service market, per 2026-03-19 analysis
Andes Technology, M31 Technology	contesting	Named as regional IP/custom-silicon peers competing for China and Asia design-service business, 2026-03-02

Questions people ask

Is VeriSilicon profitable in 2026?: No. VeriSilicon posted a net loss of RMB -319.8 million in H1 2025, and despite Q1 2026 revenue growing 114.47% year over year to RMB 835.74 million, the company's net loss widened further, per its Q1 2026 disclosure dated 2026-04-30.
What is VeriSilicon's biggest competitor?: Globally, Arm Holdings, Synopsys, and Cadence Design Systems dominate semiconductor IP with roughly 70-75% combined market share, but US export controls partly block them from Chinese customers, leaving VeriSilicon as China's top domestic IP vendor as of 2020 rankings cited in a 2020-06-24 interview.
Could AI replace VeriSilicon's business?: Unlikely soon. AI-computing and data-processing orders each exceeded 90% of VeriSilicon's new order intake between January and July 2026 (RMB 8.24B plus RMB 6.413B), making AI demand a revenue tailwind rather than a threat, since AI tools cannot tape out chips or hold automotive safety liability.
Who owns VeriSilicon?: VeriSilicon is a public company trading on the Shanghai STAR Market under ticker 688521.SH since its August 18, 2020 IPO, which raised about RMB 1.86 billion; founder Dr. Wayne Wei-Ming Dai, who started the company on August 21, 2001, remains Chairman and CEO.
Could a US Entity List designation hurt VeriSilicon?: Yes, this is flagged as an existential tail risk. On 2026-07-09 the US Commerce Department (BIS) announced strengthened export controls restricting China's capability to produce advanced semiconductors; no evidence VeriSilicon itself is currently listed, but the sector faces escalating scrutiny.
How fast is VeriSilicon's order backlog growing in 2026?: Very fast per company disclosure: new orders totaled RMB 8.24 billion from January 1 to April 29, 2026, and a further RMB 6.413 billion from April 30 to July 16, 2026, with AI-computing and data-processing orders each exceeding 90% of the total, per a 2026-07-16 report.

Timeline

2026-07-16New orders RMB 6.413B (Apr 30-Jul 16, 2026), AI orders exceed 90% of intake
2026-07-14Launched CPP2000 Camera Post-Processing IP for embodied robotics and mobile vision
2026-07-09US BIS announced strengthened export controls on China's advanced semiconductor capability
2026-06-09Launched VC9800D Video Processing Unit IP supporting AV2 decoding
2026-04-30Q1 2026 revenue up 114.47% YoY to RMB 835.74M; net loss widened
2026-04-29New orders reached RMB 8.24B for Jan 1-Apr 29, 2026 period
2026-03-30FY2025 revenue reported at RMB ~3.15B, up 35.77% YoY
2026-02ISO 26262 ASIL B certification for ISP8200-FS automotive camera IP series
2025-08-22H1 2025 revenue RMB 973.8M (+4.49% YoY), net loss RMB -319.8M
2020-08-18IPO on Shanghai STAR Market, raised ~RMB 1.86 billion, first-day valuation ~RMB 71.5B

Revision history

24 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

Wolfspeed Astera Labs Mythic