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China mandates 50% domestic equipment rule for chipmakers: Report
China mandates chipmakers adding capacity to use at least 50% domestic equipment, boosting local firms like Naura amid a $49 billion state-backed semiconductor push.
- In recent months, Beijing authorities told chipmakers adding new capacity they must prove through procurement tenders that at least 50% of equipment is domestically made for state approval, three people said.
- Beijing moved after U.S. export restrictions in 2023, backing the strategy with state funding including a 344 billion yuan Big Fund third phase and President Xi Jinping's 'whole nation' approach.
- Evidence shows domestic firms advancing as Naura tested etching tools on SMIC's 7nm line and state-affiliated entities placed 421 orders worth around 850 million yuan this year.
- Applications failing the threshold are typically rejected, though Chinese regulators allow flexibility for supply constraints and relax rules for advanced lines while foreign suppliers such as Lam Research and Tokyo Electron face market pressure as Naura partially replaces advanced tools.
- Officials say they aim for plants to use 100% domestic equipment eventually; the effort spans the full supply chain with Chinese scientists working on a prototype machine reported earlier this month.
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China mandates 50pct domestic equipment rule for chipmakers
SINGAPORE: China is requiring chipmakers to use at least 50 per cent domestically made equipment for adding new capacity, three people familiar with the matter said, as Beijing pushes to build a self-sufficient semiconductor supply chain.
·Malaysia
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Exclusive: China mandates 50% domestic equipment rule for chipmakers, sources say
China is requiring chipmakers to use at least 50% domestically made equipment for adding new capacity, three people familiar with the matter said, as Beijing pushes to build a self-sufficient semiconductor supply chain.
·United Kingdom
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Japan Today
Japan TodayChina mandates 50% domestic equipment rule for chipmakers, sources say
China is requiring chipmakers to use at least 50% domestically made equipment for adding new capacity, three people familiar with the matter said, as Beijing pushes to build a self-sufficient...
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Total News Sources13
Leaning Left1Leaning Right2Center4Last UpdatedBias Distribution57% Center
Bias Distribution
- 57% of the sources are Center
57% Center
14%
C 57%
R 29%
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