It’s very literally the only thing providing them protection in the first place. They have something the US can not lose and can not replace.
What on earth do you think is going to happen when you suddenly help them not rely on your infrastructure anymore.
There is no way in hell you could ever trust Trump to pick up the phone if you needed help. This is blackmail from a position of weakness from the US here.
Yes, the "or else" appears to be we will leave you at the mercy of China and potentially loose 100% of the chips which are so important to us. Is this just political theatre for home consumption?
They seem to believe Intel is a drop-in domestic replacement for TSMC, or can be made so with enough money injected. This would hand the only place actually capable of making these advanced chips today directly to China.
What on earth do you think is going to happen when you suddenly help them not rely on your infrastructure anymore.
There is no way in hell you could ever trust Trump to pick up the phone if you needed help. This is blackmail from a position of weakness from the US here.