Major players in the semiconductor supply chain in East Asia appear to be seeing it as inevitable for them to decouple with China in advanced industries involving sensitive technology, given concerns about the rapid pace of Beijing's military modernization.

The United States is taking the lead in building a "Chip 4" alliance with Taiwan, South Korea and Japan for increased economic security over a possible global chip crunch in the event of a contingency between Taiwan and China.

Japan — once the front-runner in the global semiconductor industry but now trailing leading chip producers like Taiwan and South Korea — eyes manufacturing and selling 2-nanometer generation chips at Rapidus, a new consortium involving Toyota, Sony and six other leading companies.