Copy the model of ASML. Build something really complicated that no one else can easily copy.
They have been "catching up" for the past 20 years.
People on internet forums are obsessed over "bleeding edge" fabs, when the vast majority of semiconductor products are designed for a specific process and kept in production for at least a decade.
If beating Taiwan is your definition of "catching up", then you're basically making China's status as a legitimate semiconductor manufacturer contingent on the obsolescence of everyone else's status. That's not very fair and it's not even something to brag about. Once you lose the grin, it would be game over for you.