China has announced a new requirement for its chip manufacturers to use at least 50% domestically produced equipment when expanding their production capabilities. This regulation, although not publicly documented, mandates that companies demonstrate compliance to gain government approval for their manufacturing projects. There may be temporary leniency for cutting-edge manufacturing technologies where domestic options are still under development.
The move aims to reduce China’s dependence on foreign technology and foster a self-sufficient semiconductor supply chain. This shift comes on the heels of stringent U.S. export restrictions that have limited China’s access to advanced AI chips and critical manufacturing machinery needed for the industry.
Ultimately, China’s long-term goal is to reach a point where 100% of the manufacturing equipment utilized by its chipmakers is sourced domestically.
For further information, you can refer to the Reuters article.
