That is a very western-centric view. Outside of the west and India, Huawei is still going strong. Support for China is quite high in the middle east and in Africa, where many people are skeptical of western narratives about China.
Furthermore, Huawei isn't the only Chinese party that needs advanced chips. Other Chinese phone makers such as Oppo and Xiaomi aren't banned. But they have become wary of US dependence and are seeking to decouple their semiconductor supply chain from the US. To them, while Korean suppliers are more risky than Chinese suppliers (which still need time to catch up), it's still less risky than TSMC.
This comment would have been more accurate a year or two ago.
But with the Belt and Road Initiative struggling to deliver on many of its infrastructure projects countries are increasingly reluctant to get back into bed with China. More so now that the world has seen what happens if you don't bow down to China's every demand i.e. Australian style economic blackout.
My point still stands that if I was a fab right now I would be far more attracted to the growth prospects of US/EU companies than Chinese ones.
I've seen this narrative along with CPEC failure, but is it?
Considering that US wants to join the infrastructure development game indicates it unlikely.
SK suppliers maintaly supply memory and displays to those Chinese makers and they are already produced locally in China. Samsung OLED mobile display may be the exception to this.
Furthermore, Huawei isn't the only Chinese party that needs advanced chips. Other Chinese phone makers such as Oppo and Xiaomi aren't banned. But they have become wary of US dependence and are seeking to decouple their semiconductor supply chain from the US. To them, while Korean suppliers are more risky than Chinese suppliers (which still need time to catch up), it's still less risky than TSMC.