this post was submitted on 09 Feb 2024
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From a planning perspective, the West must assume Taiwan is already "lost" and merged into China. Therefore the rational action to take is to begin spinning up as much chip production as possible in the interim, while continuing to rely on Taiwan's manufacturing.
Fun fact, the guy who founded TSMC was an immigrant working in tech firms in the mid-late 1900s but was unable to get promotions due to American racism against asians. So he said, "Aight guess I'll go back and make my own company."
The US had the TSMC founder and drove him away with hate.
Please do yourself a favor and check out podcasts covering this topic, there are some good ones.
European Technology firms also fucked this up really hard. Philipps created ASML, NXP and had a founding 25% share in TSMC, but managed to win nothing from it. Due to Philipps short-sighted management none of these great wins in the semiconductor industry benefited the company at all and all three firms are now completly spum out and worth way more than Philipps. The TSMC share alone is now worth much more than Philipps Market Cap.