The great chip leap: China’s semiconductor equipment self-reliance surges past targets

China’s drive for chip manufacturing equipment self-sufficiency advanced so rapidly in 2025 that even the country’s planners were caught by surprise, as the ratio of domestically developed semiconductor equipment surged to 35 per cent by the year’s end, up from 25 per cent in 2024.

The ratio was higher than Beijing’s target of 30 per cent, set in early 2025 to encourage China’s semiconductor industry to favour local suppliers over US rivals such as Applied Materials, Lam Research and KLA, according to a report by Jiemian News, a Chinese media outlet.

Progress had been particularly evident in critical segments such as etching and thin-film deposition, where adoption of local equipment had surpassed 40 per cent, thanks to the progress of local manufacturers such as Naura Technology Group and Advanced Micro-Fabrication Equipment.

The 5-nanometre-grade etching machine made by Advanced Micro-Fabrication had entered validation for Taiwan Semiconductor Manufacturing Co’s advanced process lines, according to the report.

Oxidation and diffusion furnaces from Naura accounted for more than 60 per cent of the 28nm production lines at Semiconductor Manufacturing International Corp, China’s top foundry. Naura’s order backlog now extended into the first quarter of 2027.

China is projected to maintain its position as the world’s largest market for semiconductor equipment through 2027. Photo: Shutterstock

Piotech doubled its share of plasma-enhanced chemical vapour deposition equipment at Yangtze Memory Technology’s 3D NAND production lines, bringing the company’s equipment share to 30 per cent from 15 per cent, according to the report.

South China Morning Post