In the 80s when the US locked out China from arms purchase and sceintific cooperation, it gained a short period of supremacy in military power and technological monopoly.  The 90s and 2000s.  By the 2010s China caught up in many of the areas and in the 2020s, even more so.

By restricting semiconductors, the same scenario will play out like it was.  This time, it is very different.  Semi-conductors, like oil are needed for pretty much everything.  The US and Europe cannot manufacture profitable semiconductors.  They need poorer countries with cheaper but highly educated and skilled workers.  There are only of few of those outside China.  There is a reason why many chips are made in Malaysia.  

If China caught up with the latest in lithography and fabrication of chips and exceed the tech monopolized by the West and Taiwan, even those western chips made in poorer countries will not be profitable.