First of all Taiwan already pays more than some Western countries such as Spain and we don’t see manufacturing rushing there. But regardless that is not how economics work. You are assuming the current world just that Taiwan pays more, well that’s not how it will happen. Taiwan will move up slowly as it has, just like TSMC and Mediatek, they will break the competition one by one (partly due to lower labor cost) and by the time they come out on top, both money and know-how will be on Taiwan’s side. But even if it comes to a tie with the west, manufacturing won’t just go back because it’s already here and it will cost money to set up a new supply chain on the other side of the planet.
And immigrants follow money (or rather where they think money is) already a lot of immigrants that I see here have chosen Taiwan over Italy, Spain and even a few cases of France and UK. If Taiwan keeps growing it will be competitive with the other ones as well. Again language barrier is a big problem but Taiwan doesn’t need them all anyways.