There is something to what you say, but the continued success of both Apple Silicon and Nvidia processors seems completely opposed to your statement. How do you reconcile those two things?
The cost is a near-monopoly, as the level of strong-arming required is only possible if the loss of business—from shoddy, corner-cutting work—is otherwise catastrophic to the outsourced supplier.
Example: You mention NVidia as a success—and they are—but reliable middle-tier builders like EVGa simply could not remain in business in the graphics card business.
Eventually only NVidia will be supplying their own GPUs and cards.
This in turn significantly drives-up the cost of hiring good local talent if the need ever arises; as TSMC discovered when setting up shop in the US.
