>China will expand its semiconductor sector, regardless whether it is economical feasible, because it is a matter of national security.

Isn't that the same justification for U.S. re-shoring of semiconductor manufacturing? Tighter control over security and not being vulnerable to some conflict in the pacific endangering everything from automobiles to cloud services. Today, everything relies on some chip so domestic production reduces vulnerability to fragile global supply chains. Covid-19 highlighted that vulnerability so I think both the private and public sectors in the US are looking to do more of all sorts of production at home.