China targets 80% chip self‑sufficiency
China’s semiconductor sector is explicitly targeting roughly 80% self‑sufficiency, including moves to replace critical equipment vendors — a policy likely to accelerate supply‑chain decoupling and sourcing risk. (asia.nikkei.com)
Shanghai has instructed a 70% share target for domestically designed or produced data‑center chips by 2027, Beijing has signalled aims for full independence on the same timeline, and Guiyang has pushed for roughly 90% local sourcing in new facilities. (trendforce.com) Three Chinese equipment firms—Naura Technology, Advanced Micro‑Fabrication Equipment (AMEC) and Shanghai Micro Electronics Equipment (SMEE)—entered the global top‑20 by revenue in 2025, with Naura rising to fifth place behind ASML, Applied Materials, Lam Research and Tokyo Electron. (trendforce.com) Domestic tool adoption in mainland fabs reached about a 35% installed share in 2025, while substitution rates for key categories such as dry etch and thin‑film deposition have reportedly exceeded 40% in recent industry tallies. (trendforce.com) ASML remains the only commercial supplier of EUV lithography machines, and Dutch export restrictions have prevented sales of ASML’s most advanced EUV systems into China. (cnbc.com) China’s SMEE has so far captured only a low single‑digit share in i‑line lithography tools, underscoring a persistent domestic shortfall in high‑end patterning equipment for advanced nodes. (cset.georgetown.edu) Nvidia commanded a dominant portion of China’s AI‑GPU market in early 2024, with analysts describing its position as roughly four‑fifths of the market at that time. (investing.com) Shanxi Securities and other market watchers project that expanding output from Huawei, Cambricon and Baidu Kunlun could compress that lead toward a 50–60% range over the next several years. (investing.com) State industrial funds and subsidies tied to chip programs have been sizable—one aggregation of three major state funds calculated support at about $96.3 billion—while equipment players are announcing domestic capacity builds such as AMEC’s planned Chengdu subsidiary and ¥3.05 billion investment for 2025–2030. (cnbc.com)
