Yes, that is the current state. I was entertaining a future scenario above. TSMC is currently building more capacity outside of Taiwan, and the US is making investments that will likely continue this.
But they're not doing investments that will entirely replace Taiwan's relevance. The bulk of their top tier technology will remain in Taiwan, and I would be very surprised to see that change. Moving some production to the US to alleviate worst-case scenarios for Washington, yes, but moving enough that Taiwan's defense becomes irrelevant? I really don't think so.
I mean, if you were TSMC's CEO/Board, knowing full well that your country of birth is highly dependent on your presence for its defense posture, would you do allow this to change?
