In 10 - 20 Years time, most hardware will be free and subsided by Software. Because hardware is easy to copy and make while Software is infinite complexity. That is what I believe Bill Gate said in late 90s or early 2000.
And that has famously stuck with Silicon Valley ever since. No one gives a damn about hardware. iPhone was expected to start a trend ( or not for some ), the industry didn't expect Apple's iPhone to be as big, they all thought these expensive iPhone would only be 1 - 2% of the market.
There is no money in PC or hardware. Dell famously sold PC nearly at a loss and only earn money from Intel's marketing programme as well as preinstalled software.
It is precisely this idea the west has simply gave up on anything Hardware and all focus on either software or Hardware IP.
All while China went "ALL IN" with making Hardware. Not only do they have far more efficient Government, they also have far more subsidies. Take TSMC for example, if money wasn't a problem, how fast could you build a new Fab in US compared to Taiwan? Which for TSMC operate at similar level of efficiency compared to Chinese Government.
And US Government isn't even slow, try UK, EU, Canada or AUS.