China mandates 50% domestic equipment use for new chip capacity
China is requiring semiconductor manufacturers to use at least 50 % domestically produced equipment when adding new production capacity, News.Az reports, citing Reuters. The rule, communicated to companies seeking state approval, is part of Beijing’s broader push to build a more self-sufficient chip supply chain amid ongoing U.S. export controls and trade tensions.
Under the directive, firms must show in procurement tenders that half of the tools and machinery they plan to use are made in China, sources familiar with the matter said. While the policy is not formalized in public regulations, authorities have been enforcing it through approval processes. Flexibility is expected in cases where domestic alternatives are not yet available, especially for advanced manufacturing technologies.
Analysts say the mandate, which aligns with long-term goals of eventually achieving 100 % domestic equipment reliance, is accelerating demand for local suppliers and challenging foreign technology vendors that traditionally dominated China’s semiconductor ecosystem.
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