Counterpoint: If the PRC takes over now, they own the process technology NVIDIA and AMD depend on. They can tell the Americans to go pound sand, good luck on your next supercomputer project, and dedicate all production to Chinese origin designs - with a helping of industrial espionage for a kick start. That’s a pretty powerful incentive for aggression that would be reduced if TSMC’s operations were more distributed. So it’s somewhat balanced out.

I think the bigger problem is the assumption that Americans can properly safeguard Taiwanese IP. Anything you send over here you might as well cc: Beijing on the email.