Nikkei Asia Exclusive: China Issues Internal 70% Domestic Silicon Wafer Target for 2026 Chipmakers — MIIT Self-Sufficiency Directive Extends Beyond Equipment to Raw Materials

A Nikkei Asia exclusive published May 5, 2026 revealed that China's Ministry of Industry and Information Technology (MIIT) has issued an internal directive targeting more than 70% of silicon wafers used by Chinese chipmakers to be sourced domestically by the end of 2026. The report reveals a significant escalation in China's semiconductor self-sufficiency drive beyond what has been publicly announced. Silicon wafers — ultra-pure crystalline discs cut from silicon ingots — are the foundational substrate for virtually all semiconductor manufacturing. Without domestic supply, Chinese chipmakers remain dependent on Japanese and Taiwanese suppliers: Shin-Etsu Chemical, Sumco, and GlobalWafers combined control approximately 70% of global silicon wafer production. MIIT's internal directive complements separate guidance documented by Tom's Hardware that Chinese chipmakers must use domestically-produced equipment for at least 50% of new fab capacity — a parallel self-sufficiency push covering the equipment layer. Together these two mandates constitute a comprehensive import substitution framework covering both the material (wafers) and tool (equipment) layers of semiconductor manufacturing — precisely the two layers most vulnerable to Western export control responses. China's domestic silicon wafer producers include Zhonghuan Semiconductor (Tianjin), SICC (silicon carbide wafers for power semiconductors), and silicon substrate units of major solar manufacturers. The domestic wafer industry has expanded dramatically under Big Fund investment but remains behind in the highest-purity 300mm wafers required for advanced-node chipmaking. Critically, the Nikkei exclusive notes the directive is internal and has not been formally announced as public policy — suggesting Beijing is managing the pace of self-sufficiency requirements to avoid triggering further Western export control responses while simultaneously reducing dependence on foreign suppliers. The 70% target by year-end 2026 is aggressive: current domestic wafer self-sufficiency for advanced nodes is estimated at 20-30%, though legacy-node (200mm) self-sufficiency is higher. The Nikkei report represents the most concrete evidence yet of China's material-layer semiconductor localization strategy operating in parallel with well-documented equipment and chip-design programs.