No more fakes? China is changing the law

Produkcja komponentów

China tightens protection of chip designs. From October 15, 2026, companies will have to demonstrate that the submitted solutions are original.

Beijing will make it more difficult for companies to obtain legal protection for solutions copied from competitors. The new regulations concern the topography of integrated circuits, i.e. the arrangement of elements and connections on the chip surface. The changes are intended to separate companies conducting their own research from entities trying to register other people’s projects. They focus on protecting Chinese IP, they do not stop using foreign technologies.

The company will have to prove the originality of the design

From October 15, 2026, the manufacturer submitting the application will have to confirm that the design was created independently. It will be necessary to declare its originality and indicate the elements that constitute the company’s own creative contribution.

Offices will have greater opportunities to reject poorly documented applications and challenge rights granted on the basis of unreliable applications. This is a significant tightening of the system in force since 2001, which provided for simpler registration.

Higher compensation for copying chips

Companies that violate the rights to the project will face more severe consequences. The court will be able to calculate compensation based on the losses of the owner of the solution or the benefits obtained by the perpetrator. In more serious cases, additional punitive damages may also be possible.

The regulations will regulate the rules for selling and licensing rights to the project and using them as financial security. Employees responsible for a protected solution are to be paid or rewarded.

TSMC and Samsung can still produce Chinese chips

The regulations do not prohibit outsourcing the production of Chinese chips to TSMC factories in Taiwan or Samsung factories in South Korea. Beijing is considering separate restrictions on the transfer of strategic technologies abroad and the use of foreign factories. However, these proposals remain at the consultation stage. The approved regulations on the protection of integrated circuit topography will take effect in China from October 15, 2026.

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