The USA is also willing to defend Taiwan and currently the US has carrier groups in the south China sea. This suggests that the idea of building chips in the US may be a diplomatic courtesy and arguably an incentive.
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Personally, I think we're at the point where the US would consider the costs of Taiwan's defense well beyond any potential benefits. It's too economically integrated with China, and the sheer number of bodies it would take aren't worth the moral victory.
Hong Kong is the writing on the wall. China wishes to restore integrity to what it regards as its territory.
TSMC must open facilities in the west because its Taiwan facilities are too dangerous to leave in enemy hands. It has to invest in capital outside of any potential conflict zone if it plans to exists over the long-term as a profit-making entity.
To be clear, if the USA defense of Taiwan leads to the extinction of the human race, so be it. We should have destroyed nazi germany in 1939. Fīat jūstitia ruat cælum. We are not worthy to survive if we do not defend democracy. I say this as a veteran and parent of kids that are just starting their life.
Edit: downvoted by the China accounts. Love it. Post facts. This is hacker news. We operate on data. I applaud today's Mars landing by China. I applaud all they have done as county to pull their people from poverty. The CPC has done amazing things to bring China forward, but it is has had its time. It is time trust in the people for leadership in the future. A democratic republic is what the world hopes for. China has so much to offer to the world.
That's a big asterisk. Biological warfare so far is the stuff of doomsday prognosticators. China isn't crazy enough to use biological weapons because they know we might (possibly even should) consider that a nuclear-level escalation.
And if they did use biological weapons, we might lose Taiwan, but we certainly wouldn't stop fighting. That kind of monstrosity cannot and will not go unanswered.