Eric Schmidt: Semiconductor Dependency Imperils American Security
wsj.com
wsj.com
"Appropriate $54 billion for the Department of Commerce and other federal agencies to implement programs to strengthen domestic industries that produce semiconductors, microchips, and telecommunication equipment"
Zoinks! I suppose it's a good way to spend money toward national security and job creation that doesn't go directly into a defense megacorp pocket.
I invite you to look up the term "prime contractor". Even outside the DoD, most contracts to small and midsize entities go through one of the major defense contractors like Lockheed or CSC.
Big companies like Intel and Google have Government divisions with things like segregated balance sheets and all the requisite tracking etc that the government requires. But small and medium companies can't really afford to do all that, unless it's 100% of their business and often not then.