China Aims to Boost Domestic Chip Manufacturing Equipment to 70% by Next Year

• February 20, 2026

China is stepping up efforts to increase the use of domestically produced equipment in its semiconductor manufacturing industry. With restricted access to advanced foreign technology, the country aims to boost the share of homegrown machinery used in chip production to 70 percent by the end of next year.

Reducing Dependency on Foreign Suppliers

In recent years, China’s semiconductor manufacturers have faced limitations due to restricted imports of cutting-edge manufacturing equipment from abroad. This has prompted the government to take decisive actions to nurture and expand its own semiconductor equipment sector as part of a larger strategy to reduce reliance on foreign imports.

According to recent industry plans, the proportion of Chinese-made equipment employed in producing chips based on mature technology nodes is expected to climb significantly within the next twelve months. This milestone reflects the country’s broader push toward self-reliance in critical technology areas.

Local manufacturers have been working to fill the gap by developing various types of chip production machinery. While exact details on the specific technologies or product lines involved remain limited, the overall target demonstrates a clear commitment from policymakers to enhance domestic capabilities and control over the semiconductor supply chain.

The move aligns with China’s wider import substitution policies aimed at ensuring stability and autonomy in sectors vital to its technological and economic future. By fostering a stronger indigenous chip manufacturing ecosystem, China hopes to mitigate the impact of trade restrictions and external competitive pressures.

Industry analysts note that increasing the share of domestic equipment could help accelerate the development and production capacity of China’s semiconductor sector. However, challenges persist in catching up with the most advanced equipment technologies globally, and the transition will involve substantial investment in research and development.

As the deadline for this target approaches, market observers will closely watch how the Chinese semiconductor equipment industry evolves and how this shift influences the global chip manufacturing landscape.

China plans to raise the share of domestically made chip production equipment to 70% by next year amid efforts to reduce reliance on foreign technology.