because that’ll reset chip size and density.

It will be extremely devastating, but not decades worth

The main part of the production, the EUV lithography machines, are made by ASML, a dutch company.

It will be expensive and very annoying, but production can be started elsewhere without too much trouble (just very expensive). TSMC is just currently being (imo rightfully) used as a protection against China

But even TSMC is starting to slowly set foot in other regions