Part of the reason the US is forcing companies like TSMC to build a fab in the US is to safeguard against the possibility that China retakes Taiwan, either militarily or politically. What people don't realize is that China doesn't have to physically take TSMC to get the technology. All of China's top semiconductor engineers come from TSMC. (There's also one famous one that defected to Samsung.) That's how China has been able to catch up so fast. This year an American company found that China was already producing a type of 7nm chip, when the industry previously thought it would take them 10-15 years to produce below 10nm.

Taiwan's problem is they are a neo-colony. TSMC is majority foreign-owned. They net between 40-50 billion USD a year. But that money doesn't go to the Taiwanese people. Salaries in Taiwan are notoriously low. The quality of life is maintained by keeping prices artificially low on the island, not by raising incomes. (You can see this in the wide discrepancy between nominal GDP and PPP) So it is relatively easy for the mainland to headhunt top TSMC engineers by offering double or triple what they were making before. Biden, taking a lead from Trump, just passed a series of massively protectionist measures without anybody noticing that would and have raised eyebrows of free-market economists:

https://www.nytimes.com/2022/10/07/business/economy/biden-chip-technology.html

https://carnegieendowment.org/2022/10/27/biden-s-unprecedented-semiconductor-bet-pub-88270

>In addition, the rules require a license for any “U.S. persons”—which include citizens, permanent residents, anyone who lives in the country, and U.S. companies—to work with Chinese companies contributing to advanced semiconductor production in China. All of these groups have been forced to halt work with Chinese semiconductor firms. This has proven immediately damaging, as leading SME firms have had to stop all servicing of equipment at Chinese fabs and many of these machines need maintenance every couple days in order to continue running. In addition, the dearth of experienced U.S. talent will inhibit Chinese industry, since semiconductor fabrication requires the kinds of intangible skills built up over decades of engineering work and can’t be captured in a blueprint or instruction manual. Prior to the new rules announcement, many U.S., Korean, and Taiwanese engineers had responded to this need by taking lucrative positions in the Chinese semiconductor industry—echoing the way Taiwan built up its own chip industry in past decades.