China revises chip design rules to bolster IP protection

China on Monday unveiled revised regulations governing integrated circuit layout designs, tightening registration standards and introducing punitive damages for serious infringement as Beijing moves to strengthen protections for domestic semiconductor intellectual property.

New Requirements for Originality

The revised regulations, signed by Premier Li Qiang on July 23 and set to take effect on October 15, were published by state news agency Xinhua on Monday, according to a joint announcement by the Ministry of Justice and the China National Intellectual Property Administration. The rules replace regulations that had been in place since 2001.firstpost+2

Under the new framework, applicants must demonstrate that their filings result from genuine creative activity, submit declarations of originality, and clearly identify the original elements in materials lodged with authorities. Regulators will be able to reject applications that fail to meet those requirements, while the changes also provide a clearer basis for challenging registrations that should not have been granted.legal.economictimes.indiatimes+1

The regulations strengthen remedies for infringement, allowing damages to be calculated based on losses suffered by the rights holder or gains made by the infringer, with courts able to award punitive damages in serious cases. The rules also clarify how layout-design rights can be licensed, transferred, or used as collateral.firstpost+1

Strategic Context

The measures do not amount to export controls but reflect the growing strategic importance Beijing assigns to technologies developed by Chinese companies. China's semiconductor industry has accelerated efforts to develop domestic alternatives following successive U.S. restrictions that have limited access to advanced chip design tools and manufacturing equipment.legal.economictimes.indiatimes+1

Chinese policymakers have also considered broader measures to prevent strategically important domestic technologies from being transferred overseas or acquired by foreign companies, the Financial Times reported last month. Those proposals could include restrictions on overseas production of advanced chips based on Chinese designs.firstpost+1

Industry Momentum

The regulatory update arrives amid sustained growth in China's chip sector. Data from the Ministry of Industry and Information Technology showed that China's integrated circuit exports rose 88.7 percent year-on-year in the first half of 2026, while the country produced 484.3 billion integrated circuits in 2025, up 10.9 percent from the prior year.globaltimes

Comprising 54 articles across six chapters, the regulations aim to protect exclusive rights to IC layout designs, encourage technological innovation, and promote scientific development at the start of China's 15th Five-Year Plan period.globaltimes