China Mandates 50% Domestic Chip Equipment for Self-Sufficiency Push

• China requires chipmakers to use at least 50% domestically made equipment for new capacity, aiming for semiconductor self-sufficiency.
• The unpublicized rule, enforced via procurement tenders, accelerates after US tech export restrictions in 2023.
• This mandate forces Chinese manufacturers to choose domestic suppliers, even where foreign options are available, rejecting non-compliant applications.
• Chinese firms like Naura and AMEC are rapidly advancing, testing cutting-edge tools (e.g., Naura's etching on 7nm SMIC lines) and gaining market share.
• Beijing is pouring hundreds of billions into the sector via the "Big Fund," leading to strong financial results and patent filings for domestic suppliers.

Why It Matters: China's 50% domestic equipment rule is rapidly boosting its chip self-sufficiency and local suppliers.