[Market Focus] Senko Breaks Into Chinese AI Semiconductor Market with Huawei and SMIC... Cambricon Benefits Anticipated

Passed Huawei and SMIC Factory Audits
Full-Scale Supply to Begin in the Second Half of the Year

The stock price of Senko, a manufacturer of electrochemical gas sensors, is showing strong performance. This appears to be due to the rapid expansion of the artificial intelligence (AI) semiconductor market in China and the fact that Senko has signed a supply contract with SMIC, a foundry company in China. In particular, it was also considered a positive factor that Cambricon, a semiconductor design company specializing in AI and often referred to as the "Nvidia of China," has reportedly entrusted part of its manufacturing to SMIC.

As of 10:09 a.m. on August 28, Senko's stock price stood at 2,460 won, up 6.26% from the previous day. The expansion of the Chinese AI semiconductor market appears to have had a positive impact.

On August 27 (local time), the Financial Times (FT) reported that Huawei will begin production at a dedicated AI chip manufacturing plant by the end of the year, and that two additional AI chip production facilities are scheduled to begin operations in 2026. The report also added that SMIC, China's largest semiconductor company, plans to double its 7-nanometer chip production capacity next year.

If this occurs, Senko is also expected to see growth in its performance, as it supplies gas detectors that are essential for semiconductor fabs (manufacturing plants). The company's revenue structure is such that sales increase as customers expand their production volume and facilities.

According to Senko's 2025 first-half report disclosed on the Financial Supervisory Service's electronic disclosure system, the company has passed factory audits at major Chinese semiconductor manufacturers such as Huawei and SMIC, and is currently conducting performance evaluations for special gas detectors for semiconductors. Senko is building production lines for on-site calibration and stabilization, and plans to begin full-scale product supply in the second half of this year.

In particular, Cambricon, a semiconductor design company often called the "Nvidia of China," has recently entrusted manufacturing to both Taiwan's TSMC and China's SMIC. According to Chinese economic media outlet Cailian Press, Cambricon's sales in the first half of this year surged by 4,348% year-on-year to 2.88 billion yuan (approximately 561.5 billion won). Its net profit for the first half reached 1.04 billion yuan, turning from a net loss in the same period last year to a profit.

Cambricon plans to expand its research and development investment, including announcing a capital raising plan of 3.985 billion yuan (about 780 billion won) for AI chip development.