It would be disastrous. While TSMC does have a few foundries outside of Taiwan, the company accounts for about a third of total global semiconductor production.

It would be disastrous. While TSMC does have a few foundries outside of Taiwan, the company accounts for about a third of total global semiconductor production. Maybe more if you consider just the most advanced process nodes. It's not that we'd lose their particular capacity, since Samsung is a fairly equal competitor, but the overall loss would be catastrophic. Everyone would be in a dire situation, but computers and smartphones would especially be hit hard because they are using the newest nodes. As an example, Apple's SoCs (at least the recent ones) all use TSMC 5nm and that production would just disappear. It's not correct that all our eggs are in one basket. There just aren't enough baskets to accommodate the loss of an entire one. Other players include SMIC, UMC, Global Foundries, and now Intel, but their capacity isn't significant enough to make up for the loss. This is why there is a push both to "second source" production, and to increase production capacity overall, especially in more politically stable geographies. The latter is a huge challenge because it requires a lot of capital and a lot of time.