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China requires chipmakers to use at least 50% domestically produced equipment for new factory approvals. This unwritten policy, enforced via procurement reviews, mandates detailed origin lists in tenders. Approvals halt below the threshold, aiming for eventual 100% localization to bolster self-reliance. 50% domestic equipment threshold for state approval on chip plant expansions. Procurement tenders must specify equipment origins, with rejections for non-compliance. Public data shows 421 domestic lithography orders worth 850 million yuan this year. China mandates 50% domestic equipment for chip factory approvals amid US curbs. Local firms like Naura surge as Beijing pushes self-sufficiency. Explore policy impacts now. (148 characters) What is China’s 50% domestic equipment requirement for chip factories? China’s 50% domestic equipment requirement compels semiconductor manufacturers seeking new factory capacity to prove at least half their tools are made locally before gaining state approval. According to a Reuters report, three sources familiar with the process confirmed authorities enforce this through procurement reviews linked to plant construction. While not codified in public policy, it acts as a binding gatekeeper, with tenders requiring explicit equipment origin disclosures. Flexibility exists for advanced lines where local options lag, but the long-term goal targets higher ratios up to full localization. How is China tightening chipmaker approvals to promote domestic supply chains? The policy accelerated following 2023 U.S. export restrictions on advanced AI chips and semiconductor tools. These blocked key shipments from the U.S., Japan, South Korea, and Europe, prompting manufacturers to pivot to local suppliers. Applications failing the 50% test face outright rejection, even when foreign gear remains accessible. For cutting-edge production, regulators grant limited waivers but demand demonstrated localization roadmaps. State procurement reflects the shift: data indicates 421 orders for domestic lithography tools and parts this year, totaling around 850 million yuan. Beijing supports this via the Big Fund’s third…

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Filed under: News - @ December 31, 2025 1:13 am