SV in 1990s was effect of 60-70 years of hardcore government funding that was not only not stopped, but amplified by WW2 whereas Europe was heavily wrecked by it (UK finally stopped wartime rationing of food in 1954!). In comparison, in 1945 USA was trying to redirect wartime production surplus into other sinks to give "soft landing" to industry and invented new approaches to discriminate women from workforce to create openings for returning soldiers.

Could something be done starting with 1990? Probably, though the much fragmented by natural borders (if not regulatory) markets with resulting less cash-flush companies had issues fighting against US competition being able to underprice them with politicians ensuring there were no barriers for american companies "or else".

Some of it was at worst mostly local (if with American "advisors"), like in Poland - we started technically from same position as Taiwan when it came to semiconductor manufacturing, but instead of investing "shock therapy" destroyed it. At the same time... can you mention a taiwan major business that is not TSMC, or part of semiconductor manufacturing chain? Without thinking too long or googling?