Maybe they can develop their own high-tech fabrication technology to catch up, but I wonder how they will manage and accelerate the progress.

The West has IP laws to incentivise R&D by the free market. In China, IP law enforcement is hit-and-miss. Small entities risk having their research getting used by others for free so it would be up to big entities that are well-connected to the centers of power to do the R&D. Research done by a few big entities in a centralized manner may not foster much innovation.

So maybe it boils down to how well they can spy or poach talent or knowledgeable people from Western companies, or maybe reverse-engineer Western products.