China cannot quickly replace Taiwan's advanced chip production

Could Chinese semiconductor production remove the economic importance of Taiwan?

China could eventually close or surpass the gap, but doing so would require major investment while Taiwan continued improving its own production.

In this November 2025 assessment, China's volume production of advanced chips is estimated to be four or five technology generations behind Taiwan's. Chinese chips are described as good for cars and appliances, while advanced production for smartphones and computers at scale remains the difficulty. Closing that gap would require substantial investment competing with other Chinese priorities. Taiwan has a reason to keep investing so that the gap does not disappear.