China Makes 50% Domestic Equipment Mandatory For New Semiconductor Plants: Report

Chinese chipmakers who have sought state approval to build or expand plants are being asked to prove capacity through tenders, according to a Reuters report.

China is reportedly making it compulsory for chipmakers in the country to ensure that at least half of their new capacity has domestically produced equipment.

While there is no public documentation of the rule yet, Chinese chipmakers seeking state approval to build or expand their plants have been asked by local authorities to prove that a least 50% of their equipment is locally made, although they would prefer it to be higher, Reuters reported.

Authorities are asking for procurement tenders as proof, people familiar with the matter told Reuters. Eventually, China is aiming for 100% domestic equipment in these plants.

The move comes as China aims for a self-sufficient domestic semiconductor supply chain after the U.S. banned exports of advanced AI chips and semiconductor equipment to the Asian nation.

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