In short, they are building their own domestic semiconductor industry. China's SMIC poached 3000+ engineers from Taiwan's TSMC (the fabricator for AMD, Nvidia,

In short, they are building their own domestic semiconductor industry. China's SMIC poached 3000+ engineers from Taiwan's TSMC (the fabricator for AMD, Nvidia, now Intel). China is putting all of its might behind SMIC and other domestic fabricators. They really only lack the latest generation of photolithographic machines, which they are trying their hardest to acquire from ASML (Dutch manufacturer of the litho machines used by TSMC and others.) The US managed to block that for now so there is something of a moat while China plays catch-up.