3 Chip Stocks With China Exposure as AI Infrastructure Demand Builds

Tariff cuts, resilient China US trade and a surge in Chinese demand for US integrated circuits have turned a once fraught export story into a fresh source of risk and potential reward. Investors who ignore where chips are actually shipped may miss where future earnings expectations shift next. This article walks through three US semiconductor exporters exposed to the latest China news and explains how the backdrop could matter for each stock.

The companies in focus next are only a small sample, and the full screen on Simply Wall St surfaced 72 more U.S. semiconductor exporters to China with equally compelling narratives that do not fit into a single article. To identify and analyze your own highest-conviction chip exposures to China, go straight to the US Semiconductor Exporters to China screener.

Microchip Technology (MCHP)

Microchip Technology is one of the clearest plays on the screener theme, with embedded chips and related services shipped across Asia, including China, while most of its US$5.1b revenue base comes from Semiconductor Products and the business is valued at about US$41.0b.

Microchip Technology’s China-linked exports matter most where they intersect with higher value embedded compute, and that is exactly where the current thesis is focused.

"Microchip Technology is seeing structural expansion in data center and AI infrastructure exposure, with total data center revenue expected to increase from about US$591 million in 2025 to roughly US$1 billion in 2026 and PCIe Gen6 design wins, including an estimated US$100 million annual program starting in 2027, which together point to a larger contribution to future revenue."

What happens to margins if a single unseen pressure on its supply chain and export mix does not break the right way?

If that supply chain pressure is on your mind, read the full narrative for Microchip Technology to see how Microchip Technology’s China exposure could be masking a very different earnings path.

Diodes (DIOD)

Diodes leans straight into the US Semiconductor Exporters to China theme, supplying a wide mix of power, protection and mixed-signal chips that underpin everything from autos to data networks across Asia, which is why its global footprint matters for this tariff story.

Diodes generates about US$1.6b from Standard Semiconductor Products across its portfolio of discrete, analog and mixed-signal devices, and the stock is valued at roughly US$4.4b.

"Diodes faces major risks from rising geopolitical tensions and new tariff regimes, particularly between the US and China, which could disrupt its global manufacturing footprint and customer relationships."

What happens to Diodes’ margins and export-driven demand if a single regulatory shift suddenly changes how freely its chips move across borders?

When that kind of shock risk is on your radar, read the full narrative for Diodes to see how Diodes’ China exposure could be masking accelerating long term potential.

Suzhou Centec Communications (SHSE:688702)

Suzhou Centec Communications designs Ethernet switching chips and network systems that plug directly into China’s networking and AI build out. It generates about CN¥1.3b from semiconductors and carries a market value near CN¥108.7b, which puts a sizable price tag on its China focused chip story.

Suzhou Centec Communications gives direct exposure to China’s demand for Ethernet chips tied to AI and data traffic, with strong revenue growth forecasts and a planned shift into profitability. The appeal sits against a very rich P/B multiple that could reshape expectations if a single growth assumption changes.

That rich P/B often hides the real swing factor, so go straight to the 1 key reward and 1 important major warning sign to see how Suzhou Centec Communications’ story could be decoupling.

Curious About What You Might Be Missing Next

Fresh themes move fast. While attention locks onto today’s tariff story, other ideas are building breakout momentum under the radar for now, so do not delay and get in early.

• Spot cash generative opportunities with resilient balance sheets before they get fully priced by scanning the list of solid balance sheet and fundamentals (25 results).
• Identify the next wave of AI infrastructure momentum by checking the curated 92 AI infrastructure stocks.
• Explore companies where robots do the heavy lifting and efficiency drives the story through the focused 91 robotics and automation stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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