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China pushes for 70% homegrown silicon wafer use as domestic firm ramps up 12-inch production — government seeking to localize critical chip supply chain amid AI boom and export restrictions

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(Image credit: Getty) A report by Nikkei Asia claims that China wants 70 percent of the silicon wafers used by its chipmakers this year to be sourced from domestic suppliers. The move marks another step in the country’s increasingly urgent push to localize its semiconductor supply chain, as chips become ever more critical in the age of AI. According to the report, reliable sources say the Chinese government's target has become an unspoken mandate among chipmakers to use locally made 12-inch wafers. "Only 30% of the market will still be open to foreign players. Some Chinese chipmakers are still aiming to produce more advanced chips, and that part of the market still requires foreign market leaders' support," a chip industry executive reportedly told Nikkei Asia. "But for the local market in mature and legacy chips, basically local Chinese silicon wafers can already meet the demand and requirements.” Article continues below Today, many of the most critical segments remain dominated by overseas companies.…

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