These questions are only half rhetorical. I really want to hear what people have to say about this.
Most everyone things China will invade Taiwan because they want to own the land. It was once part of "china" but now is a (politically unrecognized) separate nation.
Everyone thinks that the only reason not to invade is that warfare will surely destroy all semiconductor manufacturing on the island.
The US wants to cripple the Chinese semiconductor industry to ensure that Taiwan can't be invaded without severely hurting the Chinese economy.
It's only if the free world can't compete will China catch up, in which case it will get what it deserves.
The thing is, "latest and greatest" is actually a niche demand, even if we don't feel like that's the case because of phones and laptops. The market for non-phone, non-laptop, boring unsexy applications that don't require more than 14nm is apparently much bigger.