Update: Market Chatter: China Requiring Chipmakers to Use at Least 50% Domestically Made Equipment for Expanding Capacity

China is mandating that chipmakers use at least 50% domestically produced equipment for capacity expansion. This requirement, communicated to companies seeking state approval, is leading to a preference for local suppliers over foreign ones, even when foreign options are available. Companies like Lam Research are being partially replaced by domestic firms such as Naura. The Chinese embassy in the US has not confirmed the report but emphasized China's commitment to self-reliance and innovation in technology.