There's too much focus on the chip production in the news, but the industry ecosystem is much bigger than that. Especially chip design and design automation are stagnated fields in the West because of the limited talent pool and lack of investment. You guys here are used to all the VC money, but in HW development world the story is different. There's simply a lack of investors to put down 10s of millions with 5-10 years horizon. Couple this with lack of talent: there aren't enough EE graduates with necessary training, you get a bleak situation. So most if the industry relies on foreigners from developing countries: Iran, China, India, Bangladesh.. Now that those Chinese EEs have better prospects at home, most of them are returning back to China to start their own companies.
Similar trend is happening in design automation tools. We have 3 monopolies in the West extracting 20-30 peecent of the revenue from the semicon companies. There are competitors showing up in China. They aren't on par yet but it's just SW, so it's a matter of time. Since there's competition their pricing is so much better too. Unfortunately we don't have access to these SW, but Chinese companies do.