China Mandates 50% Domestic Gear For New Chip Capacity
China has mandated that chipmakers use at least 50% domestically produced equipment for new semiconductor capacity, intensifying competition with foreign suppliers from the US, Japan, and Europe. This policy shift is reshaping the global chip equipment market, as companies must demonstrate procurement from Chinese vendors to gain approval for new fabs. Despite these challenges, analysts remain optimistic about US equipment makers like Lam Research and Applied Materials, predicting strong growth driven by demand for advanced technologies and AI investments. Applied Materials shares have seen a slight increase, nearing their 52-week high.
benzinga_article·