America’s AI Action Plan: Winning the race

Forcing China to replace ASML and upgrade its own fabs.

July 29, 2025

Jon Peddie

The “America’s AI Action Plan” doesn’t rescind export controls on advanced chips to China; rather, it strengthens them. While temporary easements for chips like Nvidia’s H20 exist for trade talks, the core US strategy is to limit China’s access to cutting-edge AI chip manufacturing (7nm and below) from foundries like TSMC. This forces Chinese AI companies like Enflame and MetaX to use older process nodes (e.g., 16nm/12nm) at TSMC, hindering their ability to compete with leading firms like AMD and Nvidia in high-performance AI. The new Trump AI initiative, outlined in the “America’s AI Action Plan” and accompanying executive orders

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America’s AI Action Plan: Winning the race

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