Archive · 30 Dec 2025
China Mandates 50% Domestic Equipment for Chipmakers
China has a new rule that says companies making computer chips must use at least half of their equipment from Chinese companies.
This is because China wants to make its own technology instead of relying on other countries.
The rule is not public, but companies have been told about it.
Some companies are already using Chinese equipment for important parts of making chips.
China is also spending a lot of money to help its chip industry grow.
This is making some Chinese companies, like Naura and AMEC, do very well.
Other countries are worried because they might lose business in China.
China mandates at least 50% domestic equipment for new chipmaking capacity.
The rule is not publicly documented but is enforced through procurement tenders.
Applications failing the 50% threshold are typically rejected, with flexibility for advanced chip production lines.
China is investing heavily in its semiconductor sector, with a 344 billion yuan fund.
Domestic suppliers like Naura and AMEC are seeing rapid growth and innovation due to the mandate.
- Who
- Chinese chipmakers and domestic equipment suppliers
- What
- Mandate requiring at least 50% domestic equipment for new capacity
- When
- Recent months, with a push since 2023 U.S. export restrictions
- Where
- China
- Why
- To build a self-sufficient semiconductor supply chain and reduce reliance on foreign technology
- Mandate Requirement
- At least 50% domestic equipment for new capacity
- Flexibility
- Requirements relaxed for advanced chip production lines
- Domestic Suppliers
- Naura, AMEC, YTMC
- Foreign Suppliers
- Lam Research, Tokyo Electron
- Investment
- 344 billion yuan ($49 billion) in the semiconductor sector
- Patents
- Naura filed 779 patents in 2025, AMEC filed 259
- Revenue Growth
- Naura's revenue up 30%, AMEC's up 44% in first half of 2025