I think there's a great deal of underestimation of China's manufacturing. Granted, wafers are a totally different thing than any of the other industries they've dominated for cheap, but I certainly wouldn't count them out.

I've recently gotten into fountain pens. Sure, a $7 Jinhao or $15 Hongdian pen isn't going to write quite as nice as a $200+ pen, but they're about 80% of the way there, and you can buy tons of them for the cost of a single more expensive pen. Plus, some models will accept Western nibs just fine which means you're buying a cheap barrel and assembling a much higher quality product for almost pennies on the dollar.

One would do well not to underestimate their ability to fill markets. It may take years, but it will happen.

Can you buy Chinese cars without the Multimedia/GPS computer and "phone home" system?