u/DazzlingpAd134

According to Nikkei Asia, China is working on more than 70% of the silicon wafers used by domestic chipmakers by the end of this year. This goal demonstrates China’s most aggressive attempt to localize key semiconductor supply chains.

People familiar with the matter pointed out that the Chinese government's goal has become an unwritten rule for domestic chipmakers to give priority to the use of local 12-inch wafers. Although some of the self-sufficiency targets have failed to meet the standards in the past, the industry believes that this is expected to be a success and become an important milestone in China's promotion of supply chain autonomy.

A senior executive in the semiconductor industry, who is familiar with the situation, told Nikkei Asia that in the future, foreign manufacturers will only retain about 30% of the market space. Some Chinese chipmakers are still pursuing more advanced processes, and the field still needs to rely on the support of leading foreign companies. He added that, however, in the field of mature processes and traditional chips, China's local silicon wafers have basically met the market demand.

According to two people familiar with the direct control of the plan, the mainland wafer giant is a material (688783. SH) is currently building new plants in Xi'an and Wuhan, and it is expected to add 700,000 new production capacity per month this year. One of them said that every Chinese customer is expanding wafer production capacity, and Eswell is the most positive of them, potentially accounting for nearly half of the overall expansion. Aiswei said that it has supplied a number of international customers, including Micron (MU.US), TSMC (TSM.US), Grofonde (GFS.US) and UMC.US. In addition, Samsung Electronics (005930) has a large production base in China. KS) with SK Hynix (000660. KS) is also certifying the products of Yeswei. In 2025, the revenue of Aiswei rose to 2.64 billion yuan (about 385 million US dollars), but it has not yet turned a profit.

SMIC (00981. HK, Huahong (01347. HK), as well as the head of China's top memory factory, Xin, and the Yangtze River, are the main customers of Weswei. Aiswei pointed out that its domestic wafers have become the default choice for the expansion of new domestic fabs. ( ec/da)

Reuters exclusively reported in March that Hua Hong Group had developed advanced chip manufacturing technologies that could be used to produce artificial intelligence chips, a milestone in Beijing's efforts to boost tech self-sufficiency. The group's contract chipmaking business, Huali Microelectronics, was preparing a 7-nanometer chipmaking process at its Shanghai plant, sources said.

U.S. chip equipment companies and other suppliers could lose billions of dollars in sales, one of the people said, especially if they were supplying a ⁠chipmaking plant that is under construction, or one that is retooling to begin making more advanced chips. The restrictions could slow China's domestic chipmaking drive, though Hua Hong may be able to replace the tools with ⁠ones from foreign or Chinese companies.