Machine Tool Boom: H1 Industry Profit Up 110.8% as AI and NEV Demand Surges

Driven by emerging industries such as artificial intelligence and new energy, demand for high-end machine tools in China continues to surge, accelerating the intelligent upgrade of the entire supply chain, CCTV News reported on October 29. In the first half of 2026, the machine tool industry recorded RMB 530.9 billion in revenue, up 7.6% year-on-year, while total profit reached RMB 19.6 billion, a jump of 110.8% — profit growth far outpacing revenue growth, signaling a shift toward high-precision, high-value products.

Downstream demand is the core engine of this upcycle. In Changzhou, Jiangsu, a machine tool maker developed twin-head horizontal and gantry machining centers for new-energy heavy-truck battery trays, whose two spindles work simultaneously to double machining efficiency. The company has delivered 300 units in 2026, with orders still climbing. In Suzhou, a manufacturer of six-axis PCB drilling machines has seen output of its advanced series exceed twice the total of 2025, driven by booming AI-related demand for high-end printed circuit boards, with orders scheduled into the second quarter of 2027.

As a high-frequency consumable of machine tools, cutting tools recover earlier than machine tools themselves. A cemented carbide tool maker in Danyang, Jiangsu now produces 250,000 tools per month at nearly 100% capacity utilization, with orders booked through December. Industry-wide, cutting tool revenue reached RMB 65.5 billion in H1 (+26.4%), with profit up 127.9% to RMB 8.8 billion.

Analysts note that demand from aerospace, new energy, AI and humanoid robotics for high-precision, high-performance machines remains strong, giving the upcycle considerable momentum. For precision parts manufacturers, the recovery in upstream equipment and tooling also underpins capacity expansion and process upgrades.

Source: CCTV News, October 29, 2026