I've always wondered what it would be like to suddenly lose the ability to build higher technology like computer chips. Obviously this is just a shortage and not the same as manufacturing just vanishing, but the effects will be interesting to observe.
Many products like water boilers, ovens or toasters can be built more robust without digital chips. I would argue we would see a overall quality improvement from having a bad chip shortage.
I would be careful to conflate internet connected trash with enough ARM cores and LoC to make your brain melt with the likes of a well placed humble microcontroller.. the mechanical or analogue components they replaced were usually far more temperamental, bulky, expensive and bad at their job. There are exceptional environments like in nuclear power, but for most purposes integrated electronics have improved reliability when done well.