12 billion dollars to set up a fab in Arizona to produce 20 thousand chips with production only beginning in 2024......
Where have I heard of something like that before...
The media is hyping up this project as some sort of game changer and ultimate trump card that could be used to leverage China...
This is no different than that Foxconn Wisconsin mega factory that was supposed to be finished this year that could employ 13,000 workers only before finding it could employ a fraction of that amount.
Also, if I should follow the logic of "Giving Taiwan independence for TSMC and China could have been much better off", then I would say India should hand over all the Muslim majority regions to Pakistan so that India wouldn't had so much terrorist attacks and go to war with Pakistan. Pakistan would be friends with India and India would be much richer today and and have improved trade with Pakistan and not waste so much on defense spending, leaving more money to invest in its economy.
I can take the logic even further and say that:
Once India sees the importance of peace and prosperity by handing over territory to other countries, it will continue further and hand over Tamil Nadu to Sri Lanka, give Sikkim and Goa independence, return South Tibet to China. India would be friends with all its neighbors and it will never have any enemies, it's economy could had reached China's level had it done that.
Ultimately, China is making strides in tech, do not underestimate it's ability for scientific breakthrough. It will be the third nation to have a fully functioning space station in space and send landers to Mars soon. 7nm chips for China is a piece of cake.