China has set a goal to produce more than 70% of the advanced silicon wafers used in its semiconductor industry domestically, aiming to boost self-sufficiency as global competition intensifies. Its wafer production share rose from nearly zero to over 25% last year, but leading-edge chips still rely on foreign suppliers. The United States is expanding the Pax Silica consortium — reportedly adding Norway as the 15th member — to build alternative supply chains that reduce dependence on China.
China Seeks Over 70% Domestic Production of Advanced Silicon Wafers as Global Chip Race Heats Up
China is aiming to have more than 70% of the advanced silicon wafers used in its semiconductor industry manufactured domestically, a strategic push to increase self-sufficiency amid intensifying global competition for chips.
According to Nikkei, China’s manufacturing capacity in this sector has risen steadily since the start of the decade, climbing from a negligible share of global output to more than 25% last year. Despite that growth, many leading-edge semiconductors still depend on foreign-made components and processes, prompting Beijing to target the development of world-class wafer production at home.
Why It Matters
The move reflects broader concerns over supply-chain security and technological leadership. Advanced silicon wafers are a foundational input for high-performance chips used in smartphones, servers, artificial intelligence, and defense systems. Greater domestic production could reduce China’s exposure to export controls and trade restrictions imposed by other countries.
Global Response
In response to the shifting landscape, the United States is expanding partnerships aimed at diversifying and securing supply chains for critical technologies. A US official told Semafor that Norway is set to become the 15th member of the Pax Silica consortium — an initiative intended to build alternatives to supply chains that rely on China for high-end semiconductor components.
Sources: Nikkei reporting on China’s wafer targets; Semafor reporting on Pax Silica expansion.
While details on timelines and specific policy measures remain limited, the announcements underscore accelerating efforts on both sides to shore up domestic capabilities and allied supply networks for next-generation semiconductor production.
Help us improve.
