This is when people get all confused by the difference between "necessary" and "sufficient". You need a lot more than lower taxes to make a business-friendly environment, and in some sense these are fungible. Businesses can pay more taxes in order to get other advantages, like more flexible labor policy, more skilled workers, or more stable regulations. People don't realize that stability of regulations is much more important than the specific content. You don't want some demagogue adding huge costs to you because you don't payoff some politically connected group, and the moment any business gets successful, lots of politically connected groups appear at their door demanding payoffs.

The specific problem with chip manufacturing is that this is a dirty business requiring lots of chemicals and lots of water. There is simply no way anything like that can happen in Western Europe now. You will have millions of sanctimonious kids with nothing more meaningful in their lives than marching with signs about saving the ground, etc, and then angry politicians will get on soapboxes and denounce the greedy-ground-polluters in order to win elections, and so Europe will continue to buy their chips from factories located in East Asia or America, where there are jurisdictions in which people have other things to give their life meaning.

Manufacturing has been pouring into East Asia not because asians are better at manufacturing, but because they value it enough to make systematic efforts to attract and promote it. It's about values and worldviews much more than a simple thing like tax rates (although East Asia has reasonable business tax rates, they have phenomenally cheap credit for manufacturers, good infrastructure, and very stable regulations.)