This sounds very much like Seventy-Two Letters (2000), a novella by Ted Chiang.
It is in a steampunk type setting, and in this alternate reality reproduction is subject to the "law of preformation", in which sperm cells contain miniature versions of humans, whose sperm in turn hold miniature versions... and so on:
all living things had been created at the same time, long ago, and
births today were merely enlargements of the previously imperceptible.
Although they appeared newly created, these homunculi were countless
years old; for all of human history they had lain nested within
generations of their ancestors, waiting for their turn to be born.
A crisis is found to be happening, when advances in microscopy reveal that the number of nested homunculi is coming to its limit:
"We are in agreement as to the implication of these findings: that the
human species has the potential to exist for only a fixed number of
generations, and we are within five generations of the final one."
The scientists indeed seek a way to resolve this crisis, using techniques borrowed from golem creation.
A copy is available to read at the Internet Archive.