Reuters cited multiple informed sources, revealing that China has required chip manufacturers to purchase at least 50% of their equipment domestically when adding new capacity, as an important condition for approving the construction or expansion of wafer fabrication plants. This regulation is not publicly documented, but companies have been required in recent months to demonstrate through bidding documents that the proportion of domestic equipment meets the standard; otherwise, they often find it difficult to get approval. Informed sources said that this ratio is "encouraged to be higher than 50%" in policy implementation, with a long-term goal of achieving "100% domestic equipment." However, in advanced process areas, due to the immaturity of domestic equipment, there is still some flexibility in the requirements.
This move is seen as a key step for Beijing in "reducing foreign dependence" in the semiconductor sector. Since the U.S. tightened export restrictions on chips and equipment to China in 2023, China has accelerated efforts to build an independent supply chain. The policy has already shown results: the etching equipment from China's local supplier, Beijing Semiconductor Equipment Group (BSE), is being used for testing on SMIC's 7-nanometer production lines, gradually replacing the market previously dominated by Lam Research and Tokyo Electron. Analysts pointed out that under the dual push of government-mandated demand and massive investment from the "National Large Fund," China's self-sufficiency rate in certain key equipment areas has approached 50%, but its reliance on external technology in advanced processes has not been fundamentally eliminated.
Image source: network
Original article: toutiao.com/article/1853003848065290/
Statement: This article represents the views of the author alone.