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The chip thing is definitely an issue. However, even if they didn't get any chip tech or factories, they still get the island. Militarily speaking, the situation is similar to Cuba and US during the Cold War. Taking control of the island will grant them more military security. Additionally, it will grant them control over the shipping lanes in the surroundings waters, which are heavily used for international trade.
The US needs it for trade/their economy. China needs it to protect itself and gain more economic power. For these reasons, it makes sense for both China and the US to be heavily interested in controlling Taiwan. Personally, I really don't see a likely solution to avoiding military conflict unless the powers of the two sides figure out how to resolve their antagonism, which I think is unlikely without a change in Chinese leadership.
I don't really know if that makes a whole bunch of sense..... The only country with the capabilities of attacking China is the US. The only real provocation that may spark that military conflict is an attack on Taiwan or South Korea.
Taiwan isn't even that advantageous of a location for an invasion either way, the strait of Formosa would be a death trap for any amphibious landing. The most militarily important region for China is and always has been the Korean peninsula.
I think Chinas main motivation is that Taiwan disrupts their plans to completely control trade routes in the South China sea. Once the 9 dash line is under control and expanded to include the territorial waters of Taiwan, China will have a defacto monopoly on trade for most of eastern Asia.