Hardware

Well, looking at a microchip under a microscope might reveal a lot about how Intel/AMD/Nvidia design their chips. But it's not going to tell you how those chips were then constructed.

That's extremely specialised knowledge requiring very advanced technology and tooling that's globally only really available at TSMC. It's also so specialised that no one person holds all the knowledge in their head, it requires hundreds or even thousands of people.

But even if you figure that out, you still need to actually know how to build the tools that can manufacture wafers. And that knowledge is almost exclusively known to ASML, a company whose products can cost nearly half a billion dollars each.

China does invest in their own fabs, but even they purchase the (older-gen) tools from ASML. Compared to TSMC, they're 2 generations behind. Compared to ASML, they're 5 generations behind.

That's not to say they aren't innovating by the way. Huawei/SMIC developed chips that are only approx. 18 months behind using innovative techniques that gets more out of the older equipment they're forced to use. It's impressive stuff. But again, this does require the state to throw its full weight behind the initiative to create more domestic manufacturing, which a single billionaire is unlikely to manage on their own.

The market may not be suited for competition yet, because of the absurd build costs (mainly due to extremely specialised knowledge with limited transferability), I guess.

China has their own fabs - e.g. SMIC. They manufacture a lot of semis. They're currently doing 7nm. Meanwhile there's work towards a homegrown EUV machine that can unlock lower node. I think Huawei is planning to test theirs later this year. If theirs doesn't work, someone else's would. China has deployed significant capital and people to the effort so it's a matter of time until some team cracks it.