As semiconductor manufacturers release their first-half results, most companies are reporting rising revenue and net profits. Looking ahead to the third quarter, robust growth in artificial intelligence and a moderate recovery in traditional markets have executives feeling optimistic, with expectations of simultaneous improvements in revenue and gross margins.

Rare gases play a vital role in semiconductor manufacturing, finding wide application in wafer processing, etching, and cooling processes. Their unique physical and chemical properties make them indispensable for maintaining material purity, boosting production efficiency, and ensuring product quality during wafer fabrication.

According to the latest H1 2026 financial reports from major listed semiconductor manufacturers, revenue and net profits have generally trended upward, with only a handful of companies experiencing a decline in net profit. Industry data shows SMIC leading the pack with revenue of 38.635 billion yuan, up 19.4% year-on-year, and net profit attributable to shareholders of 4.467 billion yuan, a surge of 94.2%. Nexchip Semiconductor reported revenue of 5.957 billion yuan, up 14.59%, though its net profit dipped 26.12% to 245 million yuan. Hua Hong Semiconductor posted revenue of 9.574 billion yuan, up 19.41%, with net profit soaring 436.69% to 399 million yuan. SiEn Integration saw revenue climb 30.53% to 4.562 billion yuan and net profit jump 263.4% to 278 million yuan.

As one of the world's leading integrated circuit wafer foundries and a leader in mainland China's IC manufacturing sector, SMIC benefited from increased wafer shipments, higher average selling prices, and an optimized product mix during the reporting period.

Nexchip Semiconductor, which focuses on semiconductor wafer foundry services, saw its revenue grow steadily thanks to active business development and ample orders. However, its profit declined due to intensifying market competition, product price fluctuations, and higher depreciation of property, plant, and equipment, which pressured gross margins in the short term.

Hua Hong Semiconductor, dedicated to chip manufacturing and the development of the integrated circuit industry, attributed its impressive growth primarily to a rise in gross margin in the second quarter, with Q2 net profit climbing 85% quarter-on-quarter. Downstream demand remained strong and production capacity was fully utilized, driving a substantial increase in core business sales. The company also aggressively expanded its customer base among leading domestic and international clients across various sectors, maintaining a diversified global customer strategy.

SiEn Integration, a leading specialty process wafer foundry in China focusing on MEMS, IGBT, MOSFET, analog IC, and MCU development and production, turned profitable in the second quarter, which drove the first-half net profit growth. In the first half, its AI business revenue climbed 84.31% year-on-year, while high-end consumer electronics revenue grew 31.76%.

In summary, all four companies achieved broad revenue growth and an upward trend in net profits, particularly in the second quarter, when technological innovation and market demand spurred a notable performance rebound, underpinning a solid first-half showing.

Looking to the third quarter, AI data centers, cloud infrastructure, and HBM capacity expansion, along with advanced process supporting wafers, are expected to serve as the primary growth drivers. With AI-led growth and a moderate recovery in traditional sectors as dual engines, these companies remain optimistic about Q3 operations. Some anticipate that increased downstream demand will lift both volumes and prices, further boosting gross margins. Others are focusing on long-term growth potential by expanding capacity and optimizing product portfolios to achieve synergies, building comprehensive service systems and offering diversified technology solutions, with expectations of growth in both revenue and gross margin.

Rare gases, essential to semiconductor fabrication, stand to benefit directly from this industry momentum. As production scales up and advanced processes expand, the demand for high-purity rare gases is expected to grow in tandem, reinforcing their critical role in the semiconductor supply chain.