China Chases Chip-Factory Dominance—and Global Clout

China is leading the world in building new chip factories, a step toward achieving more self-sufficiency in semiconductors that could eventually make some buyers reliant on China for many of the basic chips now in short supply.

As chip makers race worldwide to boost production and ease supply shortages, no country is expanding faster than China, which is slated to build 31 major semiconductor factories, known as fabs, during the four years through 2024, according to the chip-industry group SEMI.