China has ordered chip manufacturers to use 50% Chinese equipment.

The Chinese authorities have introduced a mandatory requirement for 50% use of domestic equipment by chip manufacturers. This was reported on December 30 by the Reuters news agency, citing anonymous sources.

"China requires chip manufacturers to use at least 50% of domestically produced equipment to increase production capacity, three sources familiar with the situation said," the material says.

According to the agency, this rule is not documented, however, according to sources, in recent months, the authorities have informed chip manufacturers that they must prove during tenders that at least half of their equipment will be manufactured in China.

In this way, Beijing seeks to reduce dependence on foreign technology. This trend accelerated after the United States tightened restrictions on technology exports in 2023, banning the sale of advanced artificial intelligence chips to China.

The Financial Times newspaper reported on November 4 that the Chinese authorities have introduced a subsidy system aimed at reducing energy costs for large technology companies that will use Chinese chips in their data centers to develop artificial intelligence systems.

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