All of AMD is on TSMC 7nm I think. some major chips on F35 fighter are on TSMC 7nm (I am sure this is even more relevant from drones, especially as we move to smaller swarming drones)Not really. EUV is only used in smartphones and demand side issues would resolve themselves in a total decoupling scenario
Nvidia uses samsung 10nm (not sure if EUV used) for its 30x0 GPUs and the result is almost 2 generation jump. Why? most CPU tasks are single threaded which means clock dependent and we are close to the ceiling. But GPU and AI chips are parallel which means its performance is highly dependent on advanced fab.
anyway I didn't want to get into a debate on how big a problem it is for China. It is a huge challenge to tackle and terrible situation no matter what. I want to focus on solutions. And I trying to point out that chips and software are the two side of the same coin.
CHINA SHOULD BE WORKING ON ADVANCED FABS, BUT ALSO LIGHTER SOFTWARE AND BETTER HARD/SOFTWARE INTEGRATION (LIKE APPLE) IN ORDER TO FULLY ADDRESS THIS CHALLENGE.