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.
The US is routinely running freedom of navigation exercises in the south china sea between taiwan and china and has said as recently as last month that its commitment to defend taiwan is, “rock solid”.
This is all not to mention that taiwan itself would not be all that easy to overthrow, the large majority of people there have unfavorable views of china (and conversely the majority support closer political ties to the US and other free democracies which they have and continue to build).
Everyone took note.
Taiwan may be 'grabbed' with little violence, and China can promise 'certain freedoms' (i.e fake democracy) so that feckless leaders around the world can 'save face' and say 'oh, we don't like it, but it's not that bad, please keep buying our crap, so we can buy your crap'.
China takes the 'long view' - long enough that it supercedes any populist cycle. Over 30 years of 'soft occupation' and incremental erosion of rights, thery'll be nothing left of Taiwan.
Elderly Gen Z-ers will look back at their tweets from childhood and wonder.
The problem with invading Tawian is that there is a basically a single place where you can land ships on from China. Tawian been preparing for an invasion for years. This means this single point is heavily defended and anyone attacking is on a huge disadvantage. This means there is a huge price to pay to take Tawian and even if you do, there would likely be sanctions from the West.
It was encouraging enough for Putin to try the same thing in the Baltic states, thankfully, NATO reacted ahead of time.
"The problem with invading Tawian "
They're not going to invade with amphibious ships.
They're going to invade by stripping the country of it's economic viability, by fomenting agitators, corrupting politicians, stuffing ballots. And then support the coup at the right time.