Chinese memory chipmaker CXMT plans to spend 34.9 billion yuan, or about 5.2 billion dollars, on research and capacity expansion, favouring domestic equipment suppliers.

The plan earmarks 24.1 billion yuan for research and development and 10.8 billion yuan for the second phase of a wafer-testing project. A source told the South China Morning Post that a large portion of the spending will go to domestic chipmaking-equipment makers.

The move fits Beijing’s drive for semiconductor self-sufficiency as US export controls tighten. CXMT, listed on Shanghai’s Star Market, is China’s leading DRAM producer.

The company disclosed the plan in a stock filing on September 29. It did not name the suppliers, but domestic equipment firms have been the main beneficiaries of China’s fab expansion.

Analysts say the investment will strengthen CXMT’s position in the global memory market, where it competes with Samsung, SK Hynix and Micron. The domestic-supplier tilt also shields the project from sanctions risk.