Steve Hsu has had guests on his podcasts saying exactly this. There was already a domestic semiconductor industry but big players almost never used them since the big semiconductor companies were such a safe bet.

Well, now they’re forced to use them, and they’re growing.

With the fabs available to them they can’t produce latest gen very few nanometer dies, but for a lot of use cases that doesn’t matter.

And of course, I’m sure they’ve got too people working on catching up. China graduates more engineers in a year than the United States has total.

Imagine if you banned Western countries from exporting cars to Japan in 1950.