Yes, all of the most advanced chip making factories are in Taiwan.

Intel is back in the game with PowerVia after the endless blunder that was 10nm.

In grander strategic terms Taiwan is, technologically, erm, dispensable. Both Europe and the US can, independently, make chips that are good enough, that are fast enough, to be used in any application the question is whether they're cheap enough for high-end commercial use. The military doesn't care if a chip costs twice as much and is twice as heavy the propellant and warhead of the rocket weigh magnitudes more anyway.

Where Taiwan is indispensable is being a thorn in China's side which has strategic value all of its own.