📊Executive Summary

China has mandated that chipmakers use at least 50% domestically manufactured equipment for new semiconductor production capacity. This policy aims to enhance self-reliance in the semiconductor sector, especially following U.S. export controls that limited access to advanced chipmaking tools. Companies must demonstrate compliance through procurement tenders, with a long-term goal of achieving 100% domestic equipment use. This shift is reshaping procurement strategies, as domestic suppliers like Naura Technology and AMEC gain market share from foreign firms. The policy is supported by significant state funding, indicating a decisive move towards localization in China's semiconductor industry....