Chinese Chipmakers Accelerate Equipment Localisation Amid Reliability Test

Chinese semiconductor manufacturers are setting explicit targets to source the majority of their production equipment domestically. At a recent industry conference in Wuxi, Jie Chen, chairman of Britech Semiconductor Equipment (Shanghai) Corp, noted that “one large customer here in Wuxi is aiming for 80 per cent localisation of equipment at its new fab.” The drive follows U.S. export restrictions imposed in 2022 that previously forced firms such as Flash memory maker Yangtze Memory Technologies Corp (YMTC) to rely on imported tools for roughly half of their equipment.

South China Morning Post

YMTC reports that, before the 2022 restrictions, about 50 % of its fab tools were American-made. The company now aims to build a new facility that “relies mostly on domestic machinery,” reflecting a broader shift toward self-sufficiency across China’s chip sector. Chen described this transition as moving from a “zero-to-one” phase to a “2.0 era,” emphasizing the need for consistent performance across multiple machines rather than isolated prototypes.

South China Morning Post

While technical feasibility has improved, industry leaders warn that scaling production equipment to commercial reliability remains a critical hurdle. Chen questioned whether a single successful machine can be replicated at larger volumes: “Making one machine is easy, but can five machines be the same as the first? What about 10, 50 or 100?” He added that the sector’s “final exam” will be whether Chinese toolmakers can win top overseas clients without relying on home-turf advantage.

South China Morning Post

YMTC’s spokesperson confirmed the shift toward domestic tools, stating that the company is actively redesigning its fab lines to reduce dependence on foreign equipment. Britech’s leadership echoed the sentiment that domestic toolmakers must now prove consistency and durability to meet the demands of high-volume wafer production.

South China Morning Post

• “One large customer here in Wuxi is aiming for 80 per cent localisation of equipment at its new fab,” — Jie Chen, chairman of Britech Semiconductor Equipment (Shanghai) Corp

South China Morning Post

• “Making one machine is easy, but can five machines be the same as the first? What about 10, 50 or 100?” — Jie Chen, chairman of Britech Semiconductor Equipment (Shanghai) Corp

South China Morning Post