Edit to add:
I've met a few people who are aware of US military supply chain rules, and assume it means "oh, chinese $doodad must be crap, that's why we don't give them to our troops", when the reality is just as you said. Supply chain bubbles can be massively disruptive, so its a real strategic blunder to outsource critical components to the country we have designated as our number one rival. I'm not saying we're set up for a trade war, but we are well past due to calculate the cost of increasing short-term profits. Is a quarterly decrease in operating costs from consolidating fabs worth risking a massive disruption when that single fab is knocked out? Given the volumes that even small fabs do, I argue that quarterly increase is not at all worth it.