The revised regulations, approved by Chinese Premier Li Qiang on July 23, will come into force on October 15, according to a joint statement from the Justice Ministry and the China National Intellectual Property Administration published on Monday by state news agency Xinhua.
The new framework focuses on integrated-circuit layout designs — the detailed blueprints that determine how components are arranged inside a chip. These designs often require significant engineering expertise and research investment, making them a crucial part of semiconductor innovation, including for firms that design chips but do not operate their own manufacturing facilities.
While the updated rules are not an export-control measure, they highlight the growing strategic value Beijing places on protecting technological advances created by Chinese companies. The move comes as China’s semiconductor sector continues to face restrictions from the United States, particularly in access to advanced chip-design software and cutting-edge manufacturing equipment.
China Strengthens Semiconductor Defences Amid U.S. Technology Restrictions
Over recent years, Chinese chipmakers have accelerated efforts to develop domestic alternatives after Washington imposed a series of restrictions aimed at limiting China’s access to advanced semiconductor technologies.
The pressure has pushed Beijing to place greater emphasis on strengthening intellectual-property protection and preventing the loss of strategically important technologies. The Financial Times reported last month that Chinese policymakers have been considering broader measures to stop key domestic technologies from being transferred abroad or acquired by foreign companies.
Those potential measures could include restrictions on overseas manufacturing of advanced chips based on Chinese-developed designs, the newspaper reported.
The latest regulatory revisions are designed to prevent companies or individuals from copying semiconductor designs or obtaining legal ownership of work they did not genuinely create.
Under the updated rules, applicants seeking protection for chip layout designs must demonstrate that their submissions are based on authentic creative work. They will be required to provide declarations confirming originality and identify the specific innovative elements contained in their applications.
Authorities will have greater power to reject applications that fail to meet these standards. The changes also create a stronger legal foundation for challenging registrations that were improperly approved.
"By raising originality standards, tightening registration requirements and penalising bad-faith applications, Beijing is trying to screen out low-quality claims and distinguish companies with genuine technological capability," said Alfredo Montufar-Helu, a Beijing-based managing director at Ankura China Advisors.
Tougher Penalties for Semiconductor Design Violations
Beyond stricter registration rules, the revised regulations strengthen legal protections for rights holders whose chip designs are unlawfully used.
Compensation for infringement can now be calculated based on the losses suffered by the rights owner or the profits gained by the infringing party. In particularly serious cases, courts will have the authority to impose punitive damages, increasing the financial consequences for deliberate violations.
The regulations also provide clearer guidance on how integrated-circuit layout-design rights can be licensed, transferred or used as collateral for financing.
In addition, organisations responsible for developing protected chip layouts will be required to provide reasonable rewards and compensation to qualified personnel involved in the creation process.
The changes represent another step in China’s broader effort to strengthen its semiconductor ecosystem, encourage genuine innovation and protect domestic technological assets as global competition in the chip industry intensifies.