China Mandates 50% Home-Made Chip Equipment Amid US AI War

• China now requires chipmakers to use at least 50% domestically made equipment for new capacity, a move not publicly documented but enforced by authorities.
• The mandate aims to build a self-sufficient semiconductor supply chain, intensified by US technology export restrictions in 2023.
• This policy forces Chinese manufacturers to prioritize domestic suppliers, even for equipment where foreign alternatives are available.
• Domestic firms like Naura Technology and AMEC are rapidly advancing, testing cutting-edge tools and replacing foreign suppliers like Lam Research and Tokyo Electron.
• The "Big Fund" and record orders for local equipment highlight China's "whole nation" effort, leading to significant revenue growth for domestic chip equipment makers.

Why It Matters: China's 50% domestic equipment mandate accelerates its chip self-sufficiency, impacting global tech supply.