Foreigners suffer from this.
The Chinese semiconductor industry cannot be called self-sufficient, but due to its scale it is able to serve the interests of not only domestic customers, but also foreign ones. However, as noted DigiTimesin recent years, local contract manufacturers have begun to give priority to the needs of Chinese chip designers, which has left those same Taiwanese customers in a less advantageous position.
Image source: DigiTimes
It is clear that in the context of Chinese business, considerations of profit may recede into the background given political priorities, but the scale of chip production in China may well attract foreign customers if they are to sell products in the PRC in the future. It turns out that recently foreign companies have had to rely less and less on local production capacities in China.