The share of domestically produced semiconductor equipment used in the Chinese equipment industry rose to 35 percent in 2025, according to data published by the China Semiconductor Industry Association. The increase marks a 10-point jump from 2024 and signals growing momentum behind China’s drive for self-reliance in chipmaking tools.
Behind the rise is a combination of policy pressure and financial support. Reports indicate that Beijing now requires chipmakers to source at least 50 percent of their new production equipment domestically to secure approval for fab expansions.
Key advances were made in etching and thin-film deposition, where the domestic substitution rate has now topped 40 percent. Notably, Amec’s 5nm etching tools have entered validation at TSMC, while Naura’s oxidation and diffusion furnaces make up over 60 percent of the equipment on SMIC’s 28nm lines.
Despite the progress, technical gaps remain in lithography and metrology, where local substitution stands at 18 and 25 percent, respectively, having risen by around 10 and 6 percentage points compared to 2022 levels.
