"But less advanced DUV models can be retooled with deposition and etching gear to produce 7-nanometer and possibly even more advanced chips, according to industry analysts."
The cat was out of the bag at this point. The Chinese have had the machines able to do 7nm for years. So it was only a matter of time until they did it. The same ASML litho machines which are sold to do 45nm can do 7nm. As for the deposition and etching tools the Chinese can make those themselves already.
The fact that people like Eric Schmitt thought this could be reversed using sanctions to then stop China from making FinFET chips with such cockamamie rules is what is risible.
They should have stuck to the ban on EUV litho instead of trying to get creative.
Breaking support for tools you already sold and allowed them to use is going to lead to a massive trade war. And they will just either make their own tools or figure out how to maintain them themselves eventually.
"The process is much more expensive than using EUV, making it very difficult to scale production in a competitive market environment. In China, however, the government is willing to shoulder a significant portion of chipmaking costs."
Is it? TSMC used just DUV to make its initial 7nm process. And Intel still only uses DUV machines too. They make 7nm processors. This is just pure cope.
The fact that Huawei increased its profits should be pretty much indicative. Do they think the factory is losing money on each order? The factory is a private company as well.
"Chinese companies have been legally stockpiling DUV gear for years — especially after the U.S. introduced its initial export controls last year before getting Japan and the Netherlands on board... According to an investor presentation published by the company last week, ASML experienced a jump in business from China this year as chipmakers there boosted orders ahead of the export controls taking full effect in 2024. China accounted for 46% of ASML's sales in the third quarter, compared with 24% in the previous quarter and 8% in the three months ending in March."
The Chinese are currently building a lot of factories. There is a lot of pent up demand for older chips in China to make consumer electronics and electric cars. Some this construction was decided when there was a shortage of legacy chips during the lockdowns. Plus, now that the US started sanctioning the sale of certain chips, there is no telling when they will do the same for essential older chips as well. So the Chinese industry is massively accelerating design of Chinese chips. Something the Chinese government had been trying to do since the 1990s with limited success.
"Another article from Bloomberg includes this prediction:
The U.S. won't be able to stop Huawei and SMIC from making progress in chip technology, Burn J. Lin, a former Taiwan Semiconductor Manufacturing Co. vice president, told Bloomberg News. Semiconductor Manufacturing International Corp should be able to advance to the next generation at 5 nanometers with machines from ASML Holding NV that it already operates, said Lin, who at TSMC championed the lithography technology that transformed chipmaking."
The man himself says it. The Chinese can do 5nm if they want to.