China now requires chip factories to use 50% homegrown equipment
China recently informed chipmakers they need to use at least half locally-made equipment in any new factory.
Companies have to prove it during the approval process, even if foreign gear is available.
If they can't meet the rule, their applications get rejected—unless there's a shortage or no Chinese alternative for super-advanced tech.
Why does this matter?
This move is all about boosting China's own semiconductor industry and cutting reliance on foreign tech.
Homegrown companies like Naura and AMEC are already seeing big wins: Naura doubled its patent filings since 2020 and saw revenue jump 30% in early 2025, while AMEC's revenue shot up 44%.
The policy also means more state orders for local suppliers, pushing China closer to its goal of chip self-sufficiency.