According to Reuters, China is now requiring its chipmakers to use at least 50% domestically made equipment when expanding their production capacity.
The rule is not publicly documented, but chipmakers must show that at least half of their equipment is Chinese to get government approval. The requirement may be temporarily relaxed for the most advanced manufacturing where domestic technology is not yet available.
The aim is to reduce the country’s dependence on foreign technology and build a self-sufficient semiconductor supply chain. Since 2023, US export restrictions have prevented China from buying advanced AI chips and manufacturing machinery.
