China Claims Leading Position in Global Chip Industry

Beijing: China has further strengthened its position in the global chip industry by introducing major changes to regulations governing the protection of integrated circuit designs, in a move aimed at reinforcing the country’s competitiveness in advanced chip technologies.

China’s State Council has introduced comprehensive amendments to regulations governing the protection of integrated circuit layout designs, marking the first major revision since 2001. Under the new rules, the term “semiconductor” has been removed from the definition of integrated circuits, potentially expanding legal protection beyond conventional semiconductor chips to include photonic and quantum chips.

According to reports, the revised regulations were approved at the State Council’s 91st Executive Meeting on July 10, 2026, and issued under Decree No. 842 on July 23. The new rules will take effect on October 15, 2026.

Experts say the changes go beyond a technical legal revision and reflect China’s efforts to establish a stronger regulatory framework for emerging chip technologies, particularly photonic and quantum computing.

China has already made significant progress in chip design, with companies including Alibaba, Huawei, Cambricon and Loongson developing advanced chip designs capable of competing with US technologies in certain areas.

The new regulations also strengthen intellectual property protection for chip designs, introduce tougher measures against infringement and improve mechanisms for seeking compensation for damages. In certain circumstances, third parties will also be able to request the cancellation of a chip design registration.

However, experts caution that the regulatory changes alone cannot be considered definitive proof that China has achieved technological dominance across the global chip industry. The move is primarily aimed at strengthening intellectual property protection and improving China’s competitive position in emerging chip technologies.

The development comes amid an intensifying US-China race for leadership in artificial intelligence, advanced semiconductors and next-generation chip technologies.