Sources: China targets 70%+ of silicon wafers used by its chipmakers to be made domestically by 2026; chipmakers see an unspoken mandate to use local 12" wafers (Nikkei Asia)

China is pursuing aggressive domestic semiconductor self-sufficiency, targeting 70%+ wafer production domestically by 2026, creating an implicit mandate for chipmakers to adopt local 12-inch wafers—a strategic shift that threatens the global semiconductor supply chain and Western technology leadership. This geopolitical move will intensify competition for advanced chip manufacturing capabilities and force IT organizations to reassess supply chain dependencies and technology sourcing strategies. Organizations relying on cutting-edge semiconductors must prepare for potential supply constraints and higher costs as China redirects its domestic chip ecosystem away from foreign suppliers.