The fact that Silco was ready to stop Shimmer production for Zaun's freedom, but not give up Jinx says a lot. The Shimmer trade is the only leg Silco has to stand on, he has a lot of money, yeah, but he runs out of that money very quickly without Shimmer. The Undercity would have to quit cold turkey, he wouldn't be able to pay his employees, a bunch of underlings experiencing withdrawals and a bunch of unpaid employees in a city that has no doubt experienced the symptoms of inflation since Silco's rise aren't going to let him stay in power.
Stopping the Shimmer trade would more than likely force Silco to retire or get ripped apart by his own people.. whichever came first. But still he'd rather do that than give up Jinx. He flat out admits to be willing to give up his power before ever giving up his daughter.
The over city also takes shimmer so I doubt they'd be able to be all that tough on shimmer production, and they could always get their fix from singe
Someone else would rise as the power, I think nose tube lady would probably take his place, with singe being another small supplier
The over city would riot well before the underground would feel that bad, since they'd still have alternative producers
Singed made Shimmer and Silco is the supplier. Stopping Shimmer production means Silco shuts down every manu making Shimmer and the Zaunites and Pilties would now have to recreate it.. Zaun is currently full of power hungry chembarons scrambling too quickly for power, people who don't even have enough money to eat, and Shimmer addicts in the underground. It took Singed and Silco years to make Shimmer and that was calculated, a new attempt would be sporadic.
""Nose tube lady"" is named Renni and, S2 aside, she's in charge of chemical based weaponry, usually just simple (green) chemtech. Chemtech is very common in the Undercity as of rn, she just turns it into weaponry. She herself does not do the chemical production.
Pilties also use Shimmer *illegally*, and I doubt the ones using it are smart enough to make it themselves otherwise they wouldn't risk smuggling it across the border.
And Singed does not care lol Singed does things purely out of curiosity or for those he's loyal to. You can only get Shimmer from Singed or manus across Zaun and Singed would not have nearly enough interest to start his own manus for a drug that has already satiated his curiosity.
She is mainly a weapons manufacturer, but all she'd have to do is copy what's already there, and chemtech has some chemical stuff to it, the brothel boss and mine boss don't have any proper factory production, she'd have the most factory resources at her disposal
Also, silco can just hide shimmer better or just claim all open factories are dispanded, he can just lie to the council and say he's doing the best he can to stifle shimmer but have secret underground factories.
Singed needs money for his escapades, he's been running off Silco's money, once that runs out he'll probably start selling some shimmer, or maybe he'll make more concentrated stuff so people will leave him alone if they get to antsy and try to take his that he uses for his projects