They don’t, they are approaching it but don’t have the scale. The people smuggling NVIDIA chips instead of using Huawei for AI would be laughing at these claims.

The US is and would be if they were preparing to back out of a conflict between the US and Taiwan. It would take several decades for TSMC capability to be distributed across different countries, even the US isn’t going to reach it. I don’t know where you are getting the notion that Taiwan is “losing its international status” when the first multitrillion company in the world and its customers is so dependent on it. Taiwan’s “international status” isn’t conditioned on the companies they can bully to keep from recognizing criticism coming from over there regarding mainland China, it’s industrial, technological, and military.

I can agree with some of the things you’ve said elsewhere. China is a successful country, and given time it will surpass Taiwan in terms of advanced microchip manufacture. It could even decide a fast one by not invading one and essentially causing the bursting of the AI bubble to be that much worse for US investors that have gone all in on it.

The problem with China is that it is also facing economic problems itself, which usually causes the more deranged and desperate notions to be the deciding factor. The enemies it is making internationally and their attempts to impose their will over other countries and their industrial sectors in its rise to power also isn’t helping it out, and they aren’t even trying or capable of winning a cultural war when part of it requires a great amount more censorship than the societies they want to impose on. It is under an authoritarian government that still has a lot of its founding military mindset. If China was forward thinking and was capable of using PR to control their messaging instead of suppression, they would be a lot more successful and a lot less prone to the internal corruption they now have to deal with, often severely in place of effectively.