China's semiconductor independence push is turning US export controls into a domestic boom

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Dec 31, 2025

Nano Banana Pro prompted by THE DECODER

US export restrictions push Chinese fabs toward domestic suppliersFormer ASML engineers help China build EUV prototypeNvidia caught between US restrictions and Chinese market

Beijing is enforcing an undocumented quota requiring new chip factories to prove that at least half of their equipment comes from Chinese manufacturers. The rule is squeezing foreign suppliers from the US, Japan, South Korea, and Europe out of the Chinese market.