You realize that the US is still designing the most advanced processors and technology. Now if you argued that the US has forgotten how to manufacture anything, I would agree with you.
Taiwan doesn’t “design” any leading edge chip they manufacture them. Where are the great chios from Korea? The top Android phones are four years behind iPhones as far as performance - including those from Samsung
TMSC realizes the designs. They only aren't designing because they choose not to. Basically everything you see around you Asia does better. I think the last thing we have is military technology and passenger planes.
As for software, we're only slightly better than asia.
Because their business model is to focus on manufacturing so that they don’t compete with their customers. This gives them access to Nvidia and amd with no conflict of interest. This is not something I’m just speculating about and writing about here as a counter point. This is literally a well known and specific strategic business decision made by tsmc.
Foxconn I’m less familiar with them so I can’t comment on that. But I wouldn’t be surprised if they had a similar strategy. Would apple really outsource to them if they were making their own competing phones? Fuck no.
That being said you know that all phone technology comes from abroad right? Like most design and manufacturing come from Asia. It is impossible for America alone to support the full stack of this technology. But Asia can.