ZTE

中興通訊 / 中興通訊股份有限公司

A major Chinese telecommunications and ICT equipment provider that supplies servers, data-center infrastructure, and networking gear for domestic AI deployments.

SZSE: 000063 (A shares)
HKEX: 00763 (H shares)
Profile as of September 12, 2026
#41 in the AsiaAI Tech Index
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ZTE is a critical infrastructure integrator for Chinese AI computing, converting domestic capex into rapidly growing server and storage revenue. However, it remains highly exposed to US export controls, upstream semiconductor dependencies, and intense competition from Huawei.

Key figures

Revenue FY2025: RMB 133.90 billion
Revenue growth FY2025: 10.38%
Operating margin FY2025: Not disclosed
Net income FY2025: RMB 5.62 billion
R&D spend FY2025: RMB 22.76 billion
Capital expenditure FY2025: Not disclosed
Market capitalization 2026-09-11: RMB 145.57 billion Estimate
Computing share of revenue FY2025: 24.6%
Server and storage revenue growth FY2025: More than 200%
Operator Network share of revenue FY2025: 46.9%
Government & Enterprise Business revenue FY2025: RMB 37.22 billion

Overview

ZTE is a Shenzhen-based telecommunications and ICT equipment company founded in 1985. Its historic core is mobile and fixed telecommunications infrastructure, but its current strategy combines carrier connectivity with enterprise computing, data-center infrastructure, cloud terminals, databases, and AI-enabled consumer devices.

The company's differentiator is its integration of carrier networking, custom communications silicon, optical transmission, access networks, data-center networking, servers, storage, power and cooling, database software, operating systems, and end-user devices. This breadth matters in Chinese projects that require a domestic supplier to integrate computing, connectivity, and operations rather than deliver a single component.

While it designs proprietary communications and networking chips, ZTE depends on externally supplied semiconductor manufacturing capacity, memory, processors, and software ecosystems. It serves as a major alternative domestic supplier to Huawei, offering broad carrier qualifications and a lower concentration of political and procurement dependence.

The AI angle

ZTE supplies AI-related infrastructure rather than leading-edge AI accelerators. Its relevant products include intelligent-computing servers and storage, the Orthogonal Super-Node system, AiCube intelligent-computing appliances, data-center networking and cooling infrastructure, optical transport, switches, DPUs, proprietary coherent DSPs, and the GoldenDB distributed database.

The company's AI exposure is most direct in its Government & Enterprise Business, where server and storage sales support domestic internet companies and industry customers building intelligent-computing capacity. Computing revenue grew approximately 150% in 2025, representing 24.6% of group revenue, while server and storage revenue rose more than 200%.

ZTE matters most in AI server hardware and power infrastructure because its enterprise-computing sales, servers, storage, data-center solutions, network equipment, and domestic systems integration convert Chinese AI-capex demand into reported revenue. It also sells AI-enabled smartphones and edge devices, though these are a secondary AI route compared with its enterprise infrastructure business.

Technology and moat

ZTE's moat lies in its systems-integration capabilities and carrier-grade networking expertise rather than semiconductor leadership. It combines server systems with optical transport, edge connectivity, and domestic-project integration. The company has internally developed chips since 1996, including Dinghai DPUs, switch chips, smart-gateway chips, 50G PON optical-access processors, 800G coherent DSPs, and automotive SoCs.

Its GoldenDB database provides a further domestic-software asset, ranking first in China's distributed transactional-database market and supporting major financial workloads. However, against Huawei, ZTE has a smaller scale and narrower ecosystem. Its primary constraint is its dependence on upstream CPUs, accelerators, memory, storage, foundry capacity, and software stacks, which limits its independence compared to a fully integrated national champion.

Five-pillar assessment

Scale and market position: A major global telecom-equipment supplier and a rapidly growing provider of Chinese enterprise computing, generating RMB 133.90 billion in FY2025 revenue.
Technology and R&D: Strong in carrier-grade networking, optical transmission, proprietary communications silicon, and database software, but reliant on external AI accelerators and advanced foundries.
Supply-chain centrality: Deeply integrated into Chinese telecom and enterprise infrastructure, serving major carriers and automakers, while dependent on undisclosed upstream semiconductor and equipment suppliers.
Financial momentum: Computing revenue is surging, with server and storage sales up over 200% in FY2025, though the shifting business mix is pressuring overall profitability.
Governance and quality: A dual-listed public company with state-influenced ownership, facing structural exposure to US export controls and international market-access restrictions.

Supply chain and relationships

ZTE depends heavily on externally supplied semiconductor manufacturing capacity, advanced process technology, memory, processors, network components, power equipment, and EDA tools. It does not disclose its specific foundries, packaging suppliers, memory suppliers, or AI-accelerator vendors.

On the customer side, ZTE serves major Chinese telecom operators, domestic internet companies, and vertical-industry customers. Named customers include China Mobile, FAW Group, SAIC Motor, and GAC Group, which use its automotive central-computing and communications-chip products. Its GoldenDB platform serves more than 500 customers across finance, telecoms, government, and large enterprises. China accounts for 67% of total revenue, highlighting its reliance on domestic procurement.

Customers

FAW GroupAutomotive central-computing and communications chips
SAIC MotorAutomotive chip and module products
GAC GroupAutomotive chip and module products

Partners

China MobileJoint R&D on public-cloud database products

Competitors

HuaweiInferredCompetes in 5G RAN, core networks, and AI-computing solutions
EricssonInferredCompetes in mobile-network infrastructure and core networks
NokiaInferredCompetes in RAN, fixed-network, and core-network equipment
H3CInferredCompetes in Chinese enterprise networking, servers, and AI computing
InspurInferredCompetes in Chinese servers, storage, and AI-computing projects
LenovoInferredCompetes in Chinese computing and enterprise infrastructure

Geopolitics and risk

ZTE faces high geopolitical risk due to its reliance on foreign technology and historical exposure to United States export-control enforcement. Its server, networking, optical, chip-design, and device businesses remain exposed to externally supplied semiconductors, EDA tools, manufacturing equipment, and software ecosystems.

Network-security reviews, restrictions on Chinese telecom equipment, and political concerns limit its sales opportunities in the United States, Europe, India, and other markets. Furthermore, a regional disruption in the Taiwan Strait could constrain ZTE's access to Taiwanese fabrication, packaging, networking, and component supply, which are critical to its hardware production.

Risk matrix
Risk	Severity	Why it matters
United States export controls	High	Exposed to restrictions on externally supplied semiconductors, EDA tools, and manufacturing equipment.
Advanced AI-chip supply constraint	High	AI-server growth depends on access to processors, accelerators, and high-bandwidth memory.
China carrier-investment cycle	High	Operator Network generates 46.9% of revenue, making it sensitive to domestic telecom spending.
Domestic revenue concentration	High	China contributes 67.0% of revenue, exposing it to domestic macroeconomic conditions.
Overseas market-access restrictions	High	Security reviews limit sales opportunities in the US, Europe, and India.
Competition from Huawei	High	Faces intense competition from domestic server suppliers for computing and carrier budgets.
Margin dilution from computing mix	Medium	The shift toward enterprise computing creates phased pressure on gross margins.
Cross-strait semiconductor disruption	Medium	A regional disruption could constrain access to Taiwanese fabrication and components.

Governance and ownership

ZTE is a listed Chinese joint-stock company with A shares in Shenzhen and H shares in Hong Kong. It is not a wholly state-owned enterprise, but it is state-influenced through its historical shareholding structure, which includes Zhongxingxin Telecom holding a 20.21% stake.

The company operates under PRC company law and accounting standards, with Ernst & Young Hua Ming LLP auditing its financials. ZTE's compliance posture remains a material governance consideration because of its historical exposure to United States export-control enforcement and continuing geopolitical sensitivity.

What to watch

Whether Government & Enterprise Business sustains its rapid growth and converts it into operating-margin improvement.
Whether computing remains near or above 24.6% of revenue, and the mix among servers, storage, and networking.
Whether gross-margin pressure from a higher computing mix moderates as server scale increases.
Whether China's major carriers resume meaningful capital-expenditure growth in 5G-A and optical access.
Whether export-control rules tighten around AI accelerators, EDA, or server technologies used by Chinese projects.
Whether ZTE discloses major domestic internet-company computing customers or supplier concentration.

Recent developments

March 6, 2026Released FY2025 results and emphasized its 'Connectivity + Computing' strategy.
December 31, 2025Completed FY2025 with revenue of RMB 133.90 billion, up 10.38%, and attributable net profit of RMB 5.62 billion.
December 31, 2025Computing revenue rose approximately 150% year over year to reach 24.6% of total revenue.
December 31, 2025Government & Enterprise Business revenue reached RMB 37.22 billion, approximately doubling year over year.

Coverage on AsiaAI.FYI

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About this profile

Compiled with AI-assisted research from company filings, market data, and published reporting as of September 12, 2026, then reviewed by AsiaAI.FYI. Figures marked Estimate are not company-reported. Check primary filings before relying on any number.

Confidence: B. Financial results, segments, and core product claims have high confidence from audited filings, while market capitalization uses third-party data and specific AI-server supply chains remain undisclosed.

Main sources: ZTE FY2025 audited annual report; ZTE FY2024 audited annual report; ZTE FY2025 full-year results release; Exchange-listing information; Third-party market data.

All 24 sources

Position in the AI stack

Supplies the intelligent-computing servers, storage, data-center networking, and power infrastructure that support Chinese AI deployments.

Legal name: ZTE Corporation
Headquarters: Shenzhen, China
Founded: 1985
Founders: Hou Weigui / 侯为贵
Leadership: Fang Rong / 方榕, Chair
Xu Ziyang / 徐子阳, Executive Director and President
Employees: 65,095
Ownership: Publicly listed
Listings: SZSE: 000063 (A shares)
HKEX: 00763 (H shares)
Business: Telecommunications infrastructure, enterprise computing, and consumer devices
Sector: Consumer Devices & IoT
Servers, PCs & ODMs
Telecom & Networking
Website: www.zte.com.cn