China to require chipmakers to follow 50% domestic equipment rule - report

China has announced a mandate requiring chipmakers to utilize at least 50% domestic equipment for new capacity, aiming for a self-sufficient semiconductor supply chain. Although the rule is not officially documented, companies seeking state approval for plant expansion must demonstrate that half their equipment is locally sourced. This move comes as the US tightens technology export restrictions, further pushing China to rely less on foreign technology. Local authorities may show flexibility on the 50% rule based on supply constraints but will reject applications falling below this threshold. Beijing's goal is to ultimately attain 100% domestic equipment usage. This has implications for major local players like Naura Technology and Advanced Micro-Fabrication Equipment (AMEC), as local firms increasingly shift towards these suppliers in chip etching processes.