China declares it is now the leading global chipmaking power — mainly because it just changed the definition of what a semiconductor is

China's State Council has revised the Integrated-Circuit Layout-Design Regulation, deleting the term "semiconductor integrated circuit" from its definitions article. This change effectively redefines an integrated circuit, expanding protection to include photonic and quantum chip design layouts from October 2026. The regulation was adopted at the State Council's 91st executive meeting on July 10, 2026, and takes effect on October 15, 2026.

The change aims to demonstrate China's shift from conservatism in the intellectual property system, signaling a potential claim to future leadership in chip design. The National Intellectual Property Administration published expert interpretations to accompany the regulation, with one expert arguing that the deletion of the term is significant as a display of China's shift in attitude.

The move comes as the US and China continue to grapple over AI, with chip design playing a crucial role. The US chip embargo has benefited Huawei, whose chairman acknowledged the sanctions as a catalyst for China's domestic semiconductor chain. The regulation emphasizes the importance of layout protection, covering damages, tightening submission requirements, and allowing third parties to request revocation of a registration.

While China's real ambition may lie in protecting its photonics and quantum research, the revision signifies a shift in legislative posture in the global chipmaking landscape.