All these big tech companies are fighting over the basics eventually like power and transformers and don't like to do anything dirty that would hurt their ESG score like getting into any sort of industrial business. Thus, the default is all that stuff that heavily bottlenecks American AI gets done in China.

If you listen to Tesla's recent conference call they are going to making solar panels all the way back to making the silicon ingots and totally vertically integrate. Elon lamented on a previous call that nobody wants to get involved in these primary industries and he has to do it all himself unless he puts his whole supply chain in China. For example, Tesla recently opened a state of the art lithium refinery in Texas cause nobody outside of China does that anymore. He's opening a new fab, because everyone else is too hesitant to expand to meet the capacity he needs.