The Taiwan chip situation is what happens when you just let the dead hand of the market call the shots. There are reasons the fab plants are in Taiwan.

1. Chip production takes MASSIVE amounts of clean water. REALLY MASSIVE amounts of water. Did I mention the MASSIVE amounts of clean water required?

Taiwan is a phenomenally rainy place. It doesn't have a water supply problem.

2. All of that water used in the fabrication of chips, gets contaminated with nasty cancer causing chemicals. That was the reason chip manufacturing moved to Taiwan during the 80's and 90's.

They wanted the industry, they don't regulate the chemicals, they have a never ending supply of rainwater, and they can flush all the wastewater into the Pacific ocean.

Now do you see how Taiwan wound up being the world's chip foundry?