You could see it as folding but I think considering the prevalence of computer chips being in basically everything, it was inevitable.
Modern society doesn't function if you sever the only source of a single resource with no plan to backfill it. It would be like cutting off all trade with our only sources of uranium.
I still think that these tariffs buy and large will put a significant dent in the Chinese economy and force them to the bargaining table. They have so many outputs in basically every industry that are on hold right now. Billions are lost every day that trade is halted.
Giving up Silicon I think actually gives negotiation a better chance. More room to actually breathe.