China pushes for 70% homegrown silicon wafer use as domestic firm ramps up 12-inch production — government seeking to localize critical chip supply chain amid AI boom and export restrictions

China aims for 70% of silicon wafers used by its chipmakers to be sourced domestically, emphasizing the localization of the semiconductor supply chain amid an AI boom and export restrictions. The government's target is reportedly influencing chipmakers to use locally made 12-inch wafers, with only 30% of the market open to foreign players. China's efforts to reduce reliance on foreign suppliers extend to challenging overseas companies dominating critical segments of the semiconductor stack. Xi'an Eswin Material Technology leads China's push into advanced wafer manufacturing, targeting significant production increases to meet domestic demand and enhance global market share.