China’s ‘basic self-sufficiency’ in chip-making tools could come this summer, veteran says

China could be on the verge of reaching a basic level of self-sufficiency in chip-making tools by this summer, something that seemed unlikely just a couple of years ago, according to an industry veteran, although it remains years behind the US in sophistication.

Gerald Yin Zhiyao, chairman and CEO of Shanghai-listed Advanced Micro-Fabrication Equipment China (AMEC), said during a panel discussion last week that China’s semiconductor supply chain can achieve self-sufficiency despite gaps in “quality” and “reliability”, providing fresh evidence that US restrictions may have accelerated China’s chip industry development.

“I had thought we need at least 10 years to find a solution, but with joint efforts from hundreds of companies over the past two years, we can reach basic self-sufficiency by this summer,” he said.

Yin had worked in Silicon Valley from 1984 to 2004 before setting up his own company in China, said during a discussion on Chinese semiconductor equipment on July 22. A video of the discussion was published online by state media outlet China National Radio.

While the capabilities of Chinese chip firms lag those in the US, 80-year-old Yin – who previously worked for Intel, Lam Research and Applied Materials – said he was confident that China could catch up with the best in the industry in another five to 10 years.