VeriSilicon Microelectronics (Shanghai) reported first-half 2026 revenue of 1.864 billion yuan, up 91.37% year-on-year, while net loss attributable to shareholders widened to 612 million yuan as the company continued to spend heavily on R&D and absorbed acquisition- and incentive-related costs. The semiconductor IP (intellectual property for chip designs) and chip customization company said 941 million yuan of R&D spending accounted for 50.49% of revenue, reflecting investment in NPU (neural processing unit), Chiplet (modular chip packaging), automotive-grade IP and on-device AI platforms. Mass-production services became the main growth engine, rising 185.29% to 1.163 billion yuan, while data processing revenue surged 292.17% to 732 million yuan on strong AIGC chip customization demand from cloud service providers. Gross margin fell to 31.34% from 43.32% as lower-margin delivery services took a larger share of sales. Even so, operating cash flow turned positive at 626 million yuan, and end-June backlog orders reached 12.449 billion yuan, with mass-production orders above 10 billion yuan. From January through August 17, 2026, newly signed orders totaled 15.142 billion yuan, 254% of full-year 2025 new orders. VeriSilicon said those orders take months to convert into revenue because design cycles usually run 9 to 12 months and mass-production projects take 6 to 18 months from signing to delivery. The company expects adjusted EBITDA to turn positive in the second half of 2026 and adjusted net profit attributable to shareholders to become profitable in full-year 2027, though it flagged risks including industry cycles, overseas technology licensing restrictions, receivables pressure, talent retention and weaker-than-expected AI demand.