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China's 'Made in China 2025' initiative aimed for 70% semiconductor self-sufficiency by 2025. Despite significant investments exceeding $150 billion, the country remains decades behind global semiconductor capabilities.

Progress includes the establishment of chip design firms like Alibaba and Huawei and memory production by Yangtze Memory Technologies. However, advancements in semiconductor manufacturing and equipment face severe limitations, particularly in lithography and inspection tools, leaving China reliant on foreign technology.