China mandates chipmakers to use at least 50% domestic equipment
Chinese authorities now require companies to use at least 50% domestically produced equipment when building or expanding chip manufacturing plants. This move aims to boost China’s technological independence following the stringent export restrictions imposed by the US in 2023.
Source Reuters
Though the new requirement has not been officially published, it has become mandatory for receiving government support and project approvals. According to sources, the Chinese government is targeting even higher localization levels, with the long-term goal of using 100% Chinese technology.
This measure is part of a broader strategy to strengthen the national technology sector and reduce reliance on foreign suppliers, potentially reshaping the global semiconductor market in the years ahead.
