China mandates 50% domestic equipment use in new chip plants to boost self-reliance amid U.S. restrictions.

According to three sources, China is pushing for self-reliance amid U.S. export restrictions by requiring chipmakers to use at least 50% domestically produced equipment when expanding or building new fabrication plants. The rule is enforced through state approvals, even though it isn't formally published. Applications that don't comply are rejected; advanced lines with insufficient domestic alternatives are exempt. Although complete self-sufficiency is still a long-term objective, the policy, which is supported by hundreds of billions in state funding through the "Big Fund," is accelerating the adoption of regional suppliers like Naura Technology and AMEC and boosting innovation and procurement.