Of course they will catch up. It's impossible to maintain a lead forever in a field that is slowing down as a whole. It will take some time, but they will definitely get there at some point. There is no magic sauce that makes TSMC or Samsung better at this than China can ever be. So better plan for that.
Also, China gets things done incredibly quickly when state motivation aligns with technology. See: three gorges dam, national fiber optic network, mobile coverage, HK-Zhuhai-Macau bridge, 100% contactless mobile payment and instant messaging penetration, high speed trains, electric vehicles, etc. All of these examples are from the last 20 years.
I would restate that as a more general advantage, possibly only when operating at China's immense scale: relative cognitive freedom in creating solutions due to a broader pool of options. Because the sum total of available regulatory, fiscal, environmental and other resources necessarily exceed that of private actors, courses of action that would be untenable in other systems or require difficult and expensive public-private-partnerships are certainly feasible. This is why, for example, the 'super app' did not emerge in a western economy and China is one of the only countries improving its forest cover.
