February 25, 2026 -
China is reportedly stepping up efforts to expand advanced chip manufacturing despite continuing U.S. restrictions. According to Nikkei, sources say the country aims to increase output of relatively advanced chips—including production at the 7nm and potentially 5nm performance levels—to 100,000 wafers within one to two years, up from fewer than 20,000 currently. Some sources add that Beijing has set a more ambitious target of adding another 500,000 wafers of capacity by 2030.
The report notes that this nationwide push to expand advanced chip output is intended to meet growing domestic demand for AI computing infrastructure, with SMIC, Hua Hong, and several Huawei-linked chipmakers ramping up capacity as part of the effort.
However, it remains uncertain whether production can scale to that extent, as U.S. export controls have constrained China’s access to advanced chipmaking equipment, the report notes.