Earlier quoted context omitted.
But does China want to be doing that? The fact that they weren't growing their domestic chip industry at the rate that they were before the embargo tells you the answer to that question is no, they do not want to be doing this. With that in mind, why do they not want to be doing this? What is the opportunity cost for China?
China absolutely do want that. For one, reducing the world's dependence on Taiwan-made semiconductor will demotivate some countries from backing the island nation on its independence claims.
Yes, obviously on some level they want it, but they didn't start focusing on it until they were forced to, so obviously on some level they also didn't want it.