3 Chip Stocks Trading Below Industry P E As China Export Demand Strengthens

China’s export machine is running hot again, with July exports up 23.9% year on year and integrated circuits sitting near the heart of that story. For investors, that surge in cross border demand can quietly reshape which stocks benefit most from global appetite for chips tied to artificial intelligence and electronics. This article walks through three screened semiconductor stocks exposed to that trend and explains why each might deserve a closer look now.

The stocks covered below are just a sample, with the full semiconductor and integrated circuit screen surfacing 15 more companies with equally compelling stories that are not included here. If you want to identify potential standouts for your own watchlist, head straight into the Semiconductor and Integrated Circuit Sector screener to filter and analyze the broader universe of candidates.

Smartsens Technology (Shanghai) (SHSE:688213)

Overview: Smartsens Technology (Shanghai) develops and sells CMOS image sensor chips that sit inside security cameras, cars, smartphones, PCs and other connected devices, serving customers in China and overseas. Its product range spans legacy and advanced imaging, automotive and industrial uses, as well as sensors aimed at AI, Internet of Things and metaverse style applications.

Operations: Smartsens Technology (Shanghai) generates all of its reported revenue, around CN¥9.4b, from semiconductor integrated circuit chips.

Market Cap: CN¥36.7b

Smartsens Technology (Shanghai) gives investors exposure to part of China’s export story in image sensors that feed into AI, autos and industrial automation, at a time when integrated circuit demand from overseas buyers is reported as strong. The company has been growing earnings and improving margins, yet its P/E sits below both the domestic market and the wider semiconductor industry, which can appeal to investors who prioritize valuation. At the same time, 100% of its liabilities are funded by higher risk external borrowings and board independence appears limited. With first half 2026 results due on August 22, new information could change how the market views this combination of strengths and funding risk.

Smartsens Technology (Shanghai) sits at an interesting crossroads, where earnings growth, improving margins and a lower P/E could be masking what really matters. Get the full picture in the DCF valuation analysis for Smartsens Technology (Shanghai)

Build your own semiconductor value shortlist

Smartsens Technology (Shanghai) and the two other stocks in this article all came from a single screen, but the real edge is in tailoring the filters yourself. Use our flexible Screener to combine valuation, quality and risk checks in a way that fits your process, or tap into our curated Investing Ideas for ready made starting points.

King Yuan Electronics (TWSE:2449)

Overview: King Yuan Electronics is a Taiwan based specialist in testing, assembling and packaging integrated circuits, handling critical steps like wafer probing, final test, burn in and system level testing for a wide range of chips used in memory, consumer electronics, displays, sensors and biochips.

Operations: King Yuan Electronics generates its reported revenue of about NT$37.8b from contract electronics manufacturing services focused on integrated circuit testing and related services.

Market Cap: NT$319.7b

King Yuan Electronics sits in the flow of rising global chip demand, which is being reinforced by strong Chinese exports of integrated circuits tied to artificial intelligence and electronics. Analysts expect both earnings and revenue to grow more than 30% per year, and the current P/E is below the broader semiconductor industry despite that outlook. At the same time, recent quarterly net income fell even as sales rose, non cash earnings are flagged as a quality concern, and all liabilities are funded by external borrowing. For investors who want exposure to the testing and packaging stage of the semiconductor supply chain, the combination of growth expectations, valuation and balance sheet risk may make this stock worth further research.

King Yuan Electronics sits at the intersection of strong chip demand, a lower P/E and flagged earnings quality. Get the full story in the 4 key rewards and 2 important warning signs (1 is major!)

Espressif Systems (Shanghai) (SHSE:688018)

Overview: Espressif Systems (Shanghai) is a fabless semiconductor company that designs and sells low power Wi Fi and Bluetooth system on chips, modules, and development boards that sit at the core of connected devices. Its products, software and cloud solutions help customers build smart home devices, audio products and other Internet of Things hardware in China and overseas.

Operations: Espressif Systems (Shanghai) generates around CN¥2.8b in revenue from semiconductors.

Market Cap: CN¥25.8b

Espressif Systems (Shanghai) operates in markets for integrated circuits linked to AI, cloud and connected devices. The company is currently priced at a P/E below both the domestic semiconductor average and its peer group, and it reports earnings that are regarded as high quality alongside a management team with long experience in the business. A fresh share buyback plan funded from internal cash points to confidence from the board, although investors still need to weigh this against relatively low return on equity and a balance sheet that relies fully on external borrowings. The full picture matters if you are weighing this stock against other export exposed chip companies.

Espressif Systems (Shanghai) appears to be a classic case where a lower P/E and high quality earnings may be masking something bigger. Get the full context in the analysis report for Espressif Systems (Shanghai)

Seeking Fresh Alternatives Beyond These Chips

Some of the sharpest breakouts start moving before most investors notice. Explore fresh stock ideas while they are still under the radar. Consider getting in early based on your own research and risk tolerance.

• Look for fast moving small caps that may still appear overlooked by the broader market with the curated 226 elite penny stocks with strong financials before momentum traders become more active.
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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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