Wire · regulatory
In the Chip War, Export Bans Have Worked. But We're Still Losing Ground
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Fusion42 · 29 July 2026 · Fusion42 review
US export controls on advanced EUV lithography have been circumvented by China using older DUVi machines and a multi-patterning technique to produce near-frontier 5nm and 7nm chips. Backed by state subsidies, Chinese firms like SMIC are scaling this expensive but effective method, with a proposed US law, the MATCH Act, now aiming to restrict the essential maintenance and parts needed for these older machines.
This Wire brief sits within Fusion42's coverage of Semiconductors.
◆ ◆ The Wire takeaway
Your AI hardware advantage is built on restricted access to advanced chips, but China has found a workaround and is mass-producing them with older tools. The next US move will target the maintenance of that equipment, creating a new choke point—and a new market for anyone who can service them.
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1 source · 29 Jul 2026
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