China tells chipmakers to use homegrown chipmaking tools for 50% of new capacity ā decree designed to squeeze foreign suppliers out of supply chain
ā” Quick Hits
- China mandates 50% domestic sourcing for new semiconductor equipment.
- The policy aims to boost China's domestic chipmaking industry.
- Flexibility may be shown due to limitations in domestic lithography tool production.
China Pushes for Domestic Semiconductor Equipment
China has quietly issued a mandate requiring that at least 50% of equipment used in new semiconductor manufacturing capacity be sourced domestically. This move signals a strong push to bolster China's indigenous chipmaking capabilities and reduce reliance on foreign suppliers.
The decree aims to prioritize homegrown chipmaking tools, potentially impacting foreign companies that currently dominate the semiconductor equipment market in China. While the policy is firm in its intention, there is anticipated flexibility, especially in areas like lithography, where China's domestic industry currently lacks sufficient production capacity. This suggests that foreign alternatives may still be permitted in certain cases to ensure production targets are met.
