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Sanctions were supposed to stop China's semiconductor industry. The opposite happened.

Trading curbs on high-speed chips and chipmaking gear were imposed on US and European companies selling to Chinese firms. The objective was to deny China the latest tech in semiconductors, and especially the equipment needed build their own chips. By strictly enforcing export restrictions, it was believed that China would struggle to build 10-nanometer semiconductors. But in 2023, Chinese companies introduced a 7-nanometer chip, which immediately was a boon to Huawei's Mate-60 sales, and drove down demand for Apple devices in China. In early 2024, China announced two production lines for 5-nm chips. How did Chinese companies make quantum jumps in semiconductor engineering, despite the sanctions? The Investors Business Daily and others, make a case that the sanctions themselves are the reason. The imposition of sanctions spurred Chinese innovation and technology advances that would have been unnecessary otherwise. Worse, China is now in a strong competitive position to export their own new, fast chips, at a fraction of the cost offered by Western and Japanese chipmakers. Resources and links: Why computer chips keep shrinking https://www.diskmfr.com/unveiling-the... Definition and application of semiconductor yield https://semiconductor.samsung.com/sup... China surprises semiconductor industry with 7nm mobile chip https://www.extremetech.com/computing... China close to shipping 5-nanometer chips despite curbs https://arstechnica.com/gadgets/2024/... Bloomberg, China chip stocks good long-term plays https://finance.yahoo.com/news/china-... China making more advanced chips but faces challenges https://www.cnbc.com/2024/02/12/china... Investors Business Daily, Why U.S. Chip Sanctions Against China Aren't Working https://www.investors.com/news/techno...