China has emphasized technological “self-reliance and self-strengthening” in its 2026–2030 five-year plan, identifying semiconductors as a strategic priority. Premier Li Qiang stated that semiconductors will be developed into a pillar of emerging industries. In line with this policy, senior executives from major firms such as NAURA, YMTC, and SMIC have proposed a five-year roadmap to accelerate the development of China’s semiconductor sector.
The plan aims to build an independent domestic supply chain amid tightening U.S. export controls. Key objectives include raising semiconductor self-sufficiency to 80 percent, establishing production lines for 7-nanometer chips using entirely domestically produced equipment, and achieving stable production at the 14-nanometer level. It also calls for advancing lithography capabilities, including ambitions to develop a “Chinese equivalent” of ASML. New semiconductor fabrication plants are expected to incorporate more than 50 percent domestically produced equipment to accelerate localization.
However, significant challenges remain. Current estimates suggest China’s semiconductor self-sufficiency rate was only about 33 percent in 2024. While the country is expanding capacity in mature technologies, it continues to face substantial gaps with foreign competitors, particularly in advanced manufacturing equipment such as lithography systems.
Source: Nikkei Chinese, March 30, 2026
https://cn.nikkei.com/china/ccompany/61963-2026-03-30-08-31-50.html