Beijing Mandates 50 Percent Domestic Chip Gear

China now mandates its chipmakers use at least 50% domestically made equipment to expand capacity in a major move to build a self-sufficient semiconductor supply chain. The undocumented rule forces companies seeking state approval for new factories to prove they meet the threshold. This policy directly advances Beijing’s goal of reducing reliance on foreign technology, especially after recent U.S. export restrictions. The directive is compelling Chinese manufacturers to select local suppliers over available foreign options. While authorities offer some flexibility for the most advanced production lines where domestic tools are scarce, the long-term objective points toward 100% domestic sourcing, significantly altering the global market.