TSMC, as a business, has nothing to fear from a mainland takeover beyond the risk of losing some overseas customers. It would be in the mainland's interest to keep TSMC running as smoothly as possible, like they did in HK.
Diversifying outside of Taiwan is for the benefit of the US and allies. As you mention, for Taiwan this is a bad strategic move but they have no choice but to comply.
> What matters a great deal more is India, Australia, Japan, and SK
China has no military interest in any of those. Taiwan is Chinese territory.
At most China might be interested in the part of historical Tibet that is now in India (and which it still claims) but realistically a war is no longer viable or realistic.
Diversifying outside of Taiwan is for the benefit of the US and allies. As you mention, for Taiwan this is a bad strategic move but they have no choice but to comply.
> What matters a great deal more is India, Australia, Japan, and SK
China has no military interest in any of those. Taiwan is Chinese territory.
At most China might be interested in the part of historical Tibet that is now in India (and which it still claims) but realistically a war is no longer viable or realistic.