Chinese chip ‘workaround’ boosts AI supply, triggers US export probe

This story is a reminder that the AI race is also an export-control cat-and-mouse game. By upgrading older ASML deep-UV tools with third-party components and on-site engineering, Chinese fabs appear to be nudging around US-led controls designed to cap China’s access to cutting-edge AI chips. If they can mass-produce acceptable 7nm parts this way, then the idea that chokepoints alone can slow China’s AI trajectory looks increasingly shaky.

For the AGI timeline, more supply of capable AI accelerators in China—legally or quasi-legally—means more parallel experimentation with large models, agents, and robotics. Even if performance lags the absolute bleeding edge, scale matters, and these workarounds suggest China won’t simply wait for a policy thaw. On the US side, a new investigation into ASML’s field services shows regulators are moving beyond hardware exports into lifecycle support. That escalation could lead to more intrusive monitoring, compliance burdens, and ultimately higher costs for anyone building at the frontier, not just Chinese labs.