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China targets 70% chip self-reliance, but gap remains
China’s efforts to achieve semiconductor self-sufficiency have led to rapid growth, but the country still trails established global leaders.
The Chinese semiconductor industry produced a record 484.3 billion units in 2025, an 85.2% rise since 2020, according to China’s Ministry of Industry and Information Technology.
Beijing aims for at least 70% self-reliance by 2025 under its 14th Five-Year Plan, with Goldman Sachs estimating domestic suppliers met about 14% of demand in 2024, expected to rise to 37% by 2030.
However, China remains dependent on foreign technology for EUV machines used in advanced process nodes, with a prototype EUV machine developed in Shenzhen but not yet operational.
🔗 Source: The Korea Times
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Implications, context, and why it matters.
China’s ‘decisive breakthroughs’ are fueled by a $47.5 billion state fund and aggressive talent acquisition
- Beijing backs a government-run fund called Big Fund III, with registered capital of 344 billion yuan ($47.5 billion), aimed at semiconductors and chipmaking equipment 1.
- Big Fund III puts technological sovereignty ahead of quick investment returns 2.
- Officials also chase talent, offering signing bonuses of $420,000 to $700,000 to experienced foreign engineers 2.
- On the Shenzhen extreme ultraviolet (EUV) project, which aims to build the specialized machines used for leading-edge chips, some hires received ID cards under false names and used aliases inside the secure site, per the Reuters-reported account republished by Modern Diplomacy 3.
China’s semiconductor push may reshape global supply chains for older chips first
- The Shenzhen EUV prototype is a longer-term path to leading-edge output, yet investment already lifts mature-node semiconductors at 28nm and older 4.
- Production of these legacy chips rose 40% in the first quarter of 2024 4.
- These parts matter for cars, industrial equipment, power grids, and military systems 4.
- By 2027, China’s share of mature-node manufacturing capacity may reach 39% 4.
- That scale could support low-cost mass production, which may split supply into a China-linked “red chain” and a U.S.-aligned “blue chain” 2.
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