Yes, TSMC is a very skilled company, and there is a risk that in the future there will be problem with the concentration of chip manufacturing in a few countries.
In the article that you are referring to https://www.bloomberg.com/news/features/2019-10-21/the-chipmaker-industry-is-headed-for-a-global-unwinding they state that about a third of China’s electronics manufacturing capacity will move out of the country to Vietnam, India, and elsewhere in Asia.
To build a good semiconductor foundry you only have to have money and skilled persons plus a favorable tax system. South Korea has high taxes and that is driving engineers to China, see posts above. It is not to late to have another surge in research funding and a better tax system.
China’s Import: Diode & Similar Semiconductor data was reported at 1.682 USD bn in Nov 2019. This records an increase from the previous number of 1.565 USD bn for Oct 2019.
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