No, you misunderstood.A small fab that uses electron-beam lithography can do everything that TSMC can do, and in a much simpler way.
Its problems are not technical, but economical.
The costs of producing chips are much lower than for TSMC, but the production rate is also orders of magnitude lower.
So they can be used only to produce prototypes or devices for niche applications, where the small quantities needed would never allow them to be produced at a big fab.
On the other hand, if such small fabs could be themselves mass produced, so that their cost could become low enough, then using a great number of such small fabs could satisfy the requirements in semiconductor devices and ICs of most not too big countries, and this style of production would be greatly preferable to what exists today as the end point of a long chain of acquisitions and mergers, that has resulted in a handful of SOTA manufacturers in the entire world.
Ideally, there would still exist big fabless IC design companies, like Intel, AMD or NVIDIA, but they would design for a standardized CMOS fabrication process, not for a proprietary process with secret design rules, like those of TSMC.
Then such designs would be licensed for production in distributed small fabs. Only such a system would remove the dependence of the entire world on a quasi-monopolistic system of production, where the destruction of a single fab could cripple most of the world.