China Mandates 50% Domestic Chip Equipment for Self-Reliance Amid US Restrictions

• China mandates chipmakers to use at least 50% domestically made equipment for new capacity, aiming for semiconductor self-reliance.
• This unpublicized rule, enforced via state approval for plant expansion, pushes local procurement, especially after 2023 US export restrictions.
• The "whole nation" effort, championed by President Xi Jinping and backed by the "Big Fund," seeks a fully self-sufficient supply chain.
• Domestic firms like Naura Technology and AMEC are rapidly advancing, with Naura testing 7nm etching tools and seeing significant revenue growth.
• The policy is squeezing foreign suppliers, leading to concerns among global competitors as China's self-sufficiency grows.

Why It Matters: China enforces a 50% domestic equipment rule for chipmakers, accelerating self-reliance and boosting local firms.