[News] China Reportedly Ramps Up Chip Tool Push, Sets 70% Target by 2027; SMEE, NAURA at Forefront

What happened

China has set a target to source 70% of equipment for mature-node chipmaking domestically by 2027, with domestic toolmakers like SMEE and NAURA making progress in 28nm lithography and etching. This aggressive localization push is a direct response to U.S. sanctions and aims to reduce reliance on foreign suppliers. 利空: This policy is bearish for leading non-Chinese semiconductor equipment manufacturers, as it signals a structural, long-term reduction in demand from a major market, potentially leading to oversupply and pricing pressure for mature-node tools.

Impact and signal

Affected components and suppliers

Source and time

Source: TrendForce · 2/19/2026 · View original source