# China tightens chip-design protection and clarifies rights to spur innovation > Source: > Published: 2026-08-03 12:18:43+00:00 # China tightens chip-design protection and clarifies rights to spur innovation Revised rules sharpen penalties and expand rights, underscoring Beijing’s strategy to build resilience across semiconductor and AI ecosystem [Ann Cao](/author/ann-cao)in Shanghai [chip design](https://www.scmp.com/tech/big-tech/article/3356853/chinas-chip-software-firms-back-huaweis-new-scaling-law-can-they-catch-us-rivals?module=inline&pgtype=article), a critical move to push for tech self-sufficiency amid US export controls. Premier Li Qiang signed a State Council decree to promulgate the revised rules on the protection of layout designs of integrated circuits, Xinhua reported on Monday. The new rules will take effect on October 15. [commercialisation of new chip designs](https://www.scmp.com/tech/tech-trends/article/3362002/profits-chinas-chipmaking-sector-soar-2500-first-half-amid-ai-boom?module=inline&pgtype=article). Chip design serves as the blueprint for the entire semiconductor value chain. While domestic chip manufacturing remains constrained by US restrictions on the import of advanced equipment, mastering chip design enables Chinese firms to innovate around bottlenecks through custom architectures, such as specialised hardware-software co-design strategy that Huawei Technologies is betting on. [tech self-reliance](https://www.scmp.com/business/china-business/article/3360094/star-market-7-tech-centric-stock-exchange-powers-chinas-innovation-rise?module=inline&pgtype=article)under the 15th five-year plan unveiled in March. It calls for efforts to “refine and strengthen mature-node processes, enhance capabilities in advanced process technologies, accelerate development of key equipment, materials and components, and advance high-performance processors and high-density memory”.