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This is why the “military threat” argument was always a lie. I knew the military preferred legacy nodes with proven reliability and yields.
The cutting edge was always for high end smartphones, GPUs and the like; and not military uses.
It was never about any kind of military threat or even dependence on Chinese supply chains. The Chinese threat is and always was about Chinese development undercutting US tech monopolies and in the process undercutting wall street. The oligarchy needs high tech patents, not to make stuff or be ahead for the sake of national security or just for the sake of being ahead, but to make money. By having patents they can keep being able to monopolize cutting edge sectors and have the world pay them premium to have access. At some point they just got bored of having to pay for that R&D and education. China is a threat by not only having large manufacturing base, but now also climbing up to being number one scientific superpower.