Intel is the only American company that is currently capable of addressing this problem.
Other countries subsidize chip development. I don’t think the US is anywhere near the lead in chip subsidies
If China attacked Taiwan today, the West would step in out of an unshakeable reliance upon those chips. The West would implode economically without them. The supply shortages we saw during Covid are a joke compared to Taiwan vanishing.
And as with any dictatorial situation, China is driven from the top, and dictators are often over bold, or have opinions contrary to reality.. unchallenged by their underlings. They are told what they want to hear.
My point being, China is going to take Taiwan in a few years, one way or another. If the West is not self reliant at that time, there will be war.
And that was the whole point of this act. It has broad support and was voted for by a both sides of the US spectrum. Covid supply shortages provided an easy example of why supply needs to be domestic.
The age of low cost international trade is closing. Transportation is costly, the US is no longer patrolling the oceans as much, China is very actively, openly hostile now, and the world is changing. Domestic production is going to be more and more of a requirement, for everything.