

In practical terms Taiwan is basically an independent country. Legally speaking China is in a civil Taiwan basically being a faction and a decades long ceasefire. However the length of the ceasefire, Taiwan being an island and having been a Japanese colony created a weird situation. As in a real question within Taiwan, if they are Chinese or Taiwanese and also what to do about China. However there is a pretty large majority, who do not want to have the Communist government run Taiwan in any way. So the status quo remains. Also Beijing threatens to invade, if Taipei ever calls itself not the Republic of China, but only the government of Taiwan.
Korea, Japan and the US all produce a good number of chips as well. There are also some other fabs in other countries.