On the other hand, if China assumes control of Taiwan and TSMC with it, that need not have any impact on the rest of the world. Rather, it would provide a stron

On the other hand, if China assumes control of Taiwan and TSMC with it, that need not have any impact on the rest of the world. Rather, it would provide a strong financial incentive not to push back as hard on China as we have on Russia. In other words, part of the desire to onshore chip fabrication (and other manufacturing) is in part so we can sanction China harder if need be. Dependence on TSMC weakens our resolve to defend Taiwan for political reasons, it doesn't strengthen it.