I was not trying to get into the genocide thing. I just know that Taiwan and South Korea are very close to China. And so I feel like even before China really builds up their military much more, the proximity of those places to China is a pretty significant military issue for US and its allies. Its hard to see how it does not provide military advantages.
More generally, it seems like we want to hold out hope that in the long run serious military confrontation can somehow be avoided down the line. But if not, chip production is a fairly key item that you don't really want to be happening on your enemy's doorstep.