BEIJING: China’s mandate requiring fabs to use 50% Chinese-made semiconductor tools is accelerating domestic technological development while squeezing foreign suppliers out of the world’s largest chip manufacturing market.
Sources say authorities ultimately prefer a much higher percentage and envision fully China-built fabs in the future, aligning with President Xi Jinping’s nationwide mobilisation plan for semiconductor independence.
State-backed financing, soaring procurement orders and aggressive R&D investment are propelling Chinese firms forward. Naura, for instance, is now reportedly testing its tools in 7nm manufacturing, marking a notable leap from earlier deployments.
While the policy strengthens China’s industrial resilience, it also intensifies global competition and could further fragment the international semiconductor supply chain.