China to achieve 'basic' self-sufficiency for chip fab tools this summer

China is reportedly on track to achieve basic self-sufficiency in chipmaking equipment by this summer, according to Gerald Yin Zhiyao, CEO of Advanced Micro-Fabrication Equipment China (AMEC). This development comes as China seeks to circumvent technology blockades imposed by the U.S. and its allies, which have restricted the export of advanced chip fabrication tools. While the current domestic supply chain is not yet world-class and primarily supports basic process technologies, significant progress has been made in the last two years through collaboration among numerous companies. AMEC has increased its domestic sourcing, obtaining 60% of parts for its etching tools and 80% for its metal-organic chemical vapor deposition (MOCVD) tools from within China. However, local production still accounts for only 15% to 30% of the tools used by Chinese foundries, with notable gaps in lithography systems, ion implantation tools, and electron beam inspection systems. Despite these challenges, Yin expressed optimism about achieving self-sufficiency sooner than initially anticipated, highlighting the rapid advancements made in the semiconductor sector. The ability to produce equipment capable of supporting 5nm-class process technologies, albeit in collaboration with foreign tools, indicates a significant step forward for China's semiconductor ambitions. Nonetheless, the country faces ongoing challenges related to quality and reliability in its semiconductor tool sector.