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Sources indicate that China has stealthily rolled out a new regulation. This rule stipulates that whenever chip - makers plan to add new production capacity, the proportion of equipment sourced from domestic manufacturers must account for no less than 50%. At present, this regulation hasn't been officially enshrined in formal laws and regulations. However, insiders have divulged that in recent months, companies seeking approval to construct new wafer fabrication plants or expand existing ones have all been mandated to show proof. Specifically, they need to demonstrate that at least 50% of their equipment procurement budgets are earmarked for domestic Chinese suppliers. Applications that fall short of this criterion are typically turned down.
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