In July, news broke that China had made a two-generation leap in semiconductor development, despite U.S. export controls on advanced chipmaking technology. According to Tech Insights, Semiconductor Manufacturing International Corporation (SMIC), the leading Chinese chipmaker, was able to produce 7-nanometer (nm) semiconductors using tools designed to fabricate chips at the 14nm node and above. This development has unsettled observers of China’s semiconductor industry who worry that SMIC’s manufacturing capabilities now outstrip those of most American producers and are approaching those of leading global foundries. Although node size is only one variable among many, China’s new 7nm chips could enable the...