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.