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. Wire is Fusion42's founder-focused intelligence feed: each story is connected to the funds and startups it names — every one with a live profile on Raise or Scout — so founders can follow the capital and the momentum behind the headline rather than just the headline itself. Wire analysis is one of the live surfaces Arthur reasons over.
◆ ◆ 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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