It has been widely reported that China cannot make leading-edge semiconductor devices without EUV lithography equipment from ASML of the Netherlands and electronic design automation (EDA) tools from Synopsis and Cadence of America or Siemens (Mentor Graphics) of Germany.Why is it that South Korea and Taiwan, both of which have built the most competitive integrated circuit (IC) foundry and memory IC businesses in the world, make almost no semiconductor-making equipment indigenously?China has taken advantage of that global market system while implementing an aggressive mix of mercantilism and intellectual property (IP) theft.Semiconductors are China’s tech weakness and that is where Beijing’s focus will remain until it can solve the problem of American interference and sanctions.The growing use of artificial intelligence—where China already has world-class strengths—in chip manufacturing and accumulated experience could also reduce the cost of alternatives, making export control measures less effective over time.” Technological workarounds are already bridging the gap between China’s current capabilities and the industry’s leading edge."