Alibaba's plan to spin off chip unit T-Head (Pingtouge) for a Hong Kong listing has drawn attention, underscoring how China's domestic AI industry is moving into a scaled, commercialized volume phase - from capital empowering the supply chain, to software-hardware co-iteration, to companies delivering results.
In the first three quarters of 2026, leading compute firms posted collective gains: Hygon Information revenue rose 57.58% to 14.955 billion yuan (net profit +45.12%); Cambricon revenue more than doubled with net profit up over 130%; Moore Threads and Iluvatar saw revenue jump 319.15% and 128.45%, turning profitable. Industry says the adaptation cycle between domestic large models and chips has compressed from months to days - DeepSeek and Zhipu now achieve instant multi-vendor compatibility at release - lowering commercialization cost and speeding adoption.
