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Why does Xi think he gets any say? He’s showing his full hand already, and it’s actually pathetic. Already saying that it will have to be taken by force. So he’s admitting that the people of Taiwan, if given a choice, may not choose to join China. Let’s give everyone a vote guaranteed by international overwatch, none of those mainland representatives.
This is just another dictator having a whiny shitstorm threatening to take territory by force just because they want their historical empire.
Because the winds are blowing in his favour. Xi (and the rest of the world) have watched Russia take land with little repercussion. The reaction to the invasion of Crimea was mild and allowed for the full on invasion years later. The rules have changed and now leaders are seeing that taking land, which used to be seen as a relic of the past, is back on the menu.
The US and a lot of the west is afraid to get involved and do what needs to be done to stop Putin, and Xi knows that if he waits for the perfect moment Taiwan will be his.
The US is building domestic chip manufacturing in case they lose TSMC, and once it's operational one of the main reasons they consider Taiwan an asset will be gone. Xi likely is hoping the war in Ukraine and Israel will continue and "news fatigue" will render people uninterested in a new conflict. I'm not sure what the final nail will be that makes him move, but a controllable president like Trump getting in is a good bet.
I think there are two differences between Taiwan and Ukraine: Putin is fucking insane and might actually use nukes if attacked directly by a NATO nation, but I don't think Xi would do that (I could be wrong on both assessments). And Ukraine doesn't really have anything the world wants, while Taiwan (like you correctly pointed out) is about the only place that makes high performance computer chips and nobody wants China to have a world-wide stranglehold on that product.
I think, before any chip maker in Taiwan is taken by chinese forces, their factories and laboritories might explode for some reason or another. I don't think that China can take them without catastrophic loss of very expensive and sensitive equipment that requires very specialised workers they don't have. All of these things can't be replaced in a reasonable time frame, especially at war.
If China follows through with an invasion, they might be after something else.
That something else is: Taiwan is an important geographic location. A separate Taiwan prevents China from having full easy access to the Pacific Ocean. If China holds Taiwan, China will be able to project its naval powers much further into the Pacific and the US does not like it.
This has always been the case since the KMT fled to Taiwan, way before Taiwan became a high-tech chip producing country. Way before Taiwan democratized. (Remember, Chiang Kai-Shek himself was a authoritarian asshole that has killed many earlier migrants to Taiwan.)
It's nice to have TSMC producing high-tech chips, but Samsung and Intel can also do so, perhaps only a process node (or half) behind TSMC, but Intel CPUs are no slouch compared to AMD's despite being a node behind. And Samsung have been producing some of nVidia's GPUs so they're not out of the game. But TSMC does need to be recognized and I don't really think it can be reproduced in the US. Taiwan has a very highly educated and underpaid engineering work force. I really don't think you can reproduce the same results in the US at the same costs. Its going to cost 5-10X more to move to the US.