They are ignoring the elephant in the room, domestic equipment. The market share of domestic tools went from 1% in 2019 to more than 40% in 2026. that is an 39X increase. The government now feel confident enough that they could demand that domestic fabs use 50% of domestic equipment, materials and software. With 70% in future fabs, there are multiple suppliers for every category of tools already. Other fabs that are already export controlled are going almost 100% domestic.
Had US stooges go full in on export controls against China, like countrywide ban US toolmakers of selling and servicing US tools they would had done more serious damage BUT China would had retaliated with banning all critical materials to the US, a full blown trade war. Looks like China rare earth deterrence worked and the slow roll out of US export control give Chinese companies enough time to stockpile, to the domestic supply chain to build capacity and to US companies to move their production out of the US to SEA.
