According to China Daily, February 12, 2026
China’s semiconductor sector is making steady progress in core technologies and domestic supply chains, as export restrictions from the US and the potential for further limits on advanced chip-making equipment drive the country to boost self-reliance.
Domestic companies are increasingly closing the gap with global leaders in critical areas such as photoresist — the light-sensitive material essential for etching circuits onto silicon wafers. Jiangsu Nata Opto-electronic Material, for example, developed one of China’s first self-produced ArF deep-ultraviolet (DUV) photoresists, with revenues exceeding $1.4 million in 2024 and stable supply in 2025.
Chinese chip equipment makers are also rising in global rankings. In 2025, three domestic firms entered the top 20 worldwide for sales of chip manufacturing equipment, up from just one in 2022. Notably:
Naura Technology Group climbed from 8th to 5th place, supplying key etching equipment for advanced memory chip production.
Advanced Micro-Fabrication Equipment (AMEC) now ranks 13th, offering near cutting-edge etching technology.
Shanghai Micro Electronics Equipment secured 20th place in lithography machine sales, demonstrating China’s growing capabilities in a historically challenging segment.
Experts say the technological gap between Chinese firms and global leaders is narrowing, supporting domestic chipmakers in upgrading production and scaling operations despite restrictions on US-origin equipment.
Industry insiders see enormous potential for investment:
China has the world’s largest domestic market for chip-making equipment, providing a stable launchpad for growth.
The global semiconductor equipment market reached $133 billion in 2025, surpassing the previous record, with China expected to maintain a leading position through 2027.
With focused R&D, infrastructure, and strategic investments, Chinese companies are increasingly capable of delivering advanced solutions for both domestic and international markets.
Roger Sheng, vice-president of research at Gartner, notes: “Domestic tools are now widely used in Chinese semiconductor factories. Companies like Naura are key partners for producing advanced memory chips, showing the maturity and reliability of local supply chains.”
For global investors, China’s semiconductor sector offers opportunities at the intersection of technology advancement, market scale, and strategic policy support. As the country continues to push for self-sufficiency, both equipment manufacturers and chip producers are well-positioned to benefit from domestic growth and global market expansion.