I don't quite understand the urgency of the chip-gap. Yes, Taiwan (not China) is basically the sole source of advanced chips. But they are mostly US/Western designed and made by US/Western built machines. There's no real technology gap. Or at worst it's a technology gap in a single leg of what goes into making chips.
It's hard to compete when the major tech companies are more interested in partisan politics and social justice warfare than doing what they're in business to do.
