China Mandates 50% Domestic Equipment for Chip Plants, Boosts Self-Reliance

• China requires 50% domestic equipment for new/expanded chip plants, a non-public rule for government approval.
• This policy aims to reduce foreign technology dependence, accelerated by 2023 US sanctions on advanced AI chips.
• The long-term goal is 100% domestic equipment, with significant government investment like the 'Big Fund' (344 billion yuan).
• Domestic firms like Naura are benefiting, advancing in etching technology (7 nanometer testing after 14 nanometer success).
• Global semiconductor companies are concerned as China strengthens its indigenous supply chain, potentially shifting market balance.

Why It Matters: China enforces 50% domestic equipment in chip plants to achieve semiconductor self-reliance, impacting global market.