China sets its 2026 growth target at 4.5% to 5%, the lowest since 1991. The expansion of China's semiconductor manufacturing sector is being led by major domestic chipmakers such as SMIC, Hua Hong Semiconductor, and several Huawei-linked companies. These companies are ramping up operations to produce chips using the most advanced technology available in China.

The strategic initiative is part of a broader plan to enhance domestic chip production capabilities. Key players like SMIC and Hua Hong Semiconductor, in collaboration with Huawei-linked chipmakers, are at the forefront of this effort. The focus is on developing cutting-edge semiconductor manufacturing capabilities, particularly in the production of relatively advanced chips using sophisticated technology.

China's semiconductor manufacturing expansion includes specific capacity targets and timelines. The plan aims to add a total of 500,000 wafers by 2030 and increase advanced chip output by 100,000 wafers within the next 1-2 years. This strategic focus on advanced manufacturing highlights China's commitment to building robust domestic chipmaking capabilities across different technology nodes and applications.