Export controls are only speeding up China’s chip self-sufficiency.

“Starting this year, China’s self-sufficiency push has moved from state-led to coordinated between the toolmakers and the fabs themselves. They’re working together to design and build semicap equipment and EDA from the ground up, because what China needs could be different from the rest of the world, given its constraints.”

“We believe this effort won’t be affected by export controls. In fact, as we’ve seen with China’s semicap localization rate over the past few years, export controls could accelerate it and give them more motivation to work harder.”