Manufacturing Biz #6 - Magazine - Page 16
China accelerates semi conductor
self sufficiency with mandatory local
equipment use.
C
hina has moved to harden its push
for semiconductor self-sufficiency
by mandating that chipmakers use at
least 50% domestically produced equipment
when adding new manufacturing capacity, a
policy that is already reshaping procurement
decisions across the country’s fab build-out.
The requirement, which is not publicly
documented, has been communicated
directly to chipmakers seeking state approval
for new fabs or capacity expansions, as
16
reported by Reuters. According to people
familiar with the matter, companies must
demonstrate through procurement tenders
that at least half of their tools are sourced
from Chinese suppliers, with applications
typically rejected if they fail to meet the
threshold.
While some flexibility is granted depending
on equipment availability, particularly for
advanced process nodes, the direction of
travel is clear. “Authorities prefer if it is
M A N U FA C T U R I N G B I Z M A G A Z I N E A P R I L 2 0 2 6
“Authorities prefer if it is
much higher than 50%.
Eventually they are aiming
for the plants to use 100%
domestic equipment.”
