China can compete effectively in chips not by matching advanced node performance (2nm vs 5nm) but by manufacturing massive volumes of slightly older nodes (10nm, 20nm), because AI and inference don't require bleeding-edge transistor density, and volume manufacturing advantage can overcome node disadvantage.
causalpending
Speaker
Dave BlondinEvidence Quote
“you could you could win by by sheer volume. And then when I look at the way the US innovation market works... You could you could win by by sheer volume. If you can if you can manufacture an enormous number of 5 nanometer or even 10 or 20 nanometer chips but a 100 times a thousand times more of them that actually works fine for AI and works really really well actually for especially for inference time AI”
Source
AI Experts Debate: AI Job Loss, The End of Privacy & Beginning of AI Warfare w/ Mo, Salim & Dave 176— Peter H. DiamandisCreated: 8/11/2026, 7:21:56 AM
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