The Americans launched the Chip War to stop China's growth in the chip industry, hoping to lock China down to the production of 28nm chips while the Americans ran away towards 3nm and smaller chips. If successful, the Americans would maintain a lead of at least 10 years ahead of China and depriving China from the use of faster chips in high end technology and weapons production. China would be stuck in serving only the automobiles and consumer goods manufacturing, in a way low value and low end products.
The American's sweet dream did not last long. China broke through in the manufacturing of 14nm chips, then 7nm chips and 5nm chips. The Americans were still comfortably ahead in 3nm chips and pushing for 2nm chips. The banning of selling these chips to China, and the banning of selling EUV machine to make these chips were a big blow to China. China attempted to break out from this trap by redesigning chips with the same old DUV machine, by new methods of layering to develop chips that are capable of performing like 3nm chips, with some success.
This week Huawei, China announced a new breakthrough in developing 1nm chips using its own quantum machine, not EUV machine. This is sending a shockwave across the American chip landscape. China is now ahead of the Americans. China does not need to buy EUV machine anymore. ASML is finished in this game. Nvidia too would be in trouble, with a pocket full of chips but no buyer, China has no need to buy Nvidia chips anymore.
And yes, China has won the Chip War. China is not chasing behind the Americans. China has reached the end of race, bursting across the tape, at least for this phase of the war. What now America? Still trying to make 2nm and if successful, would still have to build 1nm to be equal to China.
With China winning this Chip War, what else do the Americans have that is ahead of China? Can't think of any. Oops, America still has Democrazy that China cannot beat. The end game is near. American hegemony would soon be no more when there is no more chips or cards to play against China.