# Domestic Silicon Wafer Targets China Aims For 70% of Domestic Silicon Wafer Supply by 2026 By Adam Harrie | Written with AI assistance | Published 2026-05-14 | Business Source: Trend Hunter, https://www.trendhunter.com/trends/silicon-wafers References: [techwireasia](https://techwireasia.com/2026/05/china-semiconductor-self-sufficiency-wafer-target-2026/)  [China](https://www.trendhunter.com/trends/saic-gm-wuling) reportedly set an internal target to source more than 70% of the silicon wafers used by domestic chipmakers locally by the end of 2026, according to Nikkei Asia. The effort focuses specifically on [12-inch silicon wafers](https://www.trendhunter.com/trends/framework-pricing-adjustments), with companies such as Xi’an Eswin Material Technology (Eswin) expanding production through new facilities in Xi’an and Wuhan aimed at increasing domestic wafer capacity. The target was described as an internal government directive rather than a formally announced public policy. Eswin has rapidly scaled manufacturing and reportedly sells 12-inch wafers at prices significantly below global market norms, while international suppliers continue to dominate the most advanced wafer segments. The localisation push also comes amid wider [semiconductor supply-chain shifts](https://www.trendhunter.com/trends/Post-Moore-semiconductor-scaling) driven by US export restrictions and rising domestic investment in Chinese semiconductor materials and equipment companies. Reporting cited market-share estimates showing China’s share of the wafer market increasing from roughly 3% in 2020 to between 28% and 32% by 2025–26. The target also highlights how China is prioritising more attainable localisation milestones such as wafers and materials while more advanced areas like lithography and leading-edge logic fabrication remain significantly harder to replace domestically. Image Credit: Shutterstock/Captain Wang ## Trend Insights (Trend Hunter) - Score: 4.1/10 - Popularity: 22% | Activity: 25% | Freshness: 76% - Audience gender: 50% men, 50% women - Primary generations: Millennial, Gen X - Top markets: North America, Europe, Asia ## Categories [Trend Hunter](https://www.trendhunter.com/trends) > [Business](https://www.trendhunter.com/business) ## Key Themes ### Key Themes Behind This Trend - **Domestic Wafer Localisation:** Concentration on domestic 12-inch wafer output creates space for alternative process technologies and modular fabs that challenge incumbent global suppliers. - **Cost-competitive Production:** Aggressive below-market wafer pricing by local manufacturers highlights opportunities for radically cost-efficient production methods and automation-driven yield improvements. - **Supply-chain Insulation:** A strategic push to reduce import reliance encourages integrated domestic ecosystems combining materials, tooling, and testing to mitigate export-control risks. ### Where This Applies - **Semiconductor Materials:** Scaling local material production reveals potential for novel high-purity chemistries and closed-loop recycling systems customized to nearby fabs. - **Equipment Manufacturing:** Persistent gaps in top-tier lithography and tooling create room for alternative equipment architectures and retrofit solutions tailored to mid-range nodes. - **Fabless and Integrated Device Manufacturers:** Greater local wafer availability shifts the cost-and-lead-time landscape for designers and IDMs, enabling chip designs optimized for wider process tolerances. ## Related on Trend Hunter - [High-NA EUV Lithography Tools](https://www.trendhunter.com/trends/asml-high-na-euv.md) - [Renewable Manufacturing Moves](https://www.trendhunter.com/trends/pvv-infra-itc-services.md) - [Custom AI Accelerator Chips](https://www.trendhunter.com/trends/broadcom-wi-fi-8.md) - [Solar Manufacturing Moves](https://www.trendhunter.com/trends/fujiyama-power-systems.md) - [Baking Sector-Focused Confereces](https://www.trendhunter.com/trends/bakery-china.md) - [Domestic Metal Supply Chains](https://www.trendhunter.com/trends/Domestic-metal-supply-chains.md) - [Automated Drug Substance Productions](https://www.trendhunter.com/trends/drug-substance.md) - [Multi-Year AI Chip Agreements](https://www.trendhunter.com/trends/meta-amd-chip-pact.md) - [Global Sourcing-Focused Innovation Events](https://www.trendhunter.com/trends/amazing-april-2026.md)