https://images.news18.com/ibnlive/uploads/2021/12/pli-scheme-for-semiconductors.png
If Taiwan falls in the hands of China, it will most definitely be a short term problem, as in immediate.
Whether the US/West can find new production facilities quickly enough to remain competitive is the question.
The Dutch make the hardware, used for manufactoring chips. We can simply stop selling to China and sell directly to the US. On thr long term, I think it can be overcome and even bite China in its heel.
China however, wants to also start building the production machines for this. Then it's a real issue, both for short and long term
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