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They're already capable to build microprocessors completely in-house. This is precisely the cutting edge we're talking about.

This matters for AI datacenters in particular, if they want to be autonomous in building them they need to be able to build advanced microprocessors locally.

Cheaper isn’t even required; just better scalability.

If you have stolen IP designed for cutting edge processes you need about the same tech to produce said IP.

Producing 10x of 10-years old GPUs is not exactly useful for modern AI codebases for instance.

Despite rumours to the contrary the world does need things that aren't useful for modern AI codebases still, I'd really appreciate it right now if China could get some fabs going that just manufactured RAM, storage, and maybe a selection of chips that the big ones have given up on because its more profitable to endlessly churn out GPUs and NPUs.

Constant blaming and framing others of stealing. State support, unfair practices etc is not gonna help you become successful. China is now part of the game. You better work with them.

I wouldn't mind getting 1080ti s , kaby lake cores or gigabytes of DDR4 for cheap.