In a sense.. Currently western liberal democracies have a monopoly on the most advanced microprocessor manufacturing tech.. And they plan to keep it that way indefinitely.
This "sours the milk" so to speak and it makes it easier to take TSMC off the board.
For one, if there was ever any real consideration by China of forceful takeover it would be made clear TSMC would not be a spoil of war. This makes a scorched earth threat even more credible.
For two, it disincentizes playing games with Taiwan as a pawn based on the wests reliance on chips flowing out. Knowing the chips are flowing in large quantities from other countries removes the lynchpin status.
Third, it stabilizes supply in the chance that something does happen. Maybe a natural disaster. Maybe a blockade.
This "sours the milk" so to speak and it makes it easier to take TSMC off the board.
For one, if there was ever any real consideration by China of forceful takeover it would be made clear TSMC would not be a spoil of war. This makes a scorched earth threat even more credible.
For two, it disincentizes playing games with Taiwan as a pawn based on the wests reliance on chips flowing out. Knowing the chips are flowing in large quantities from other countries removes the lynchpin status.
Third, it stabilizes supply in the chance that something does happen. Maybe a natural disaster. Maybe a blockade.