This is some ridiculous speculation, we do plenty of such critical manufacturing in EU. Regulations is not why we don't make highly-integrated chips here.
Those alive invest in long term planning, those with a dead drive get conservative in their action.
This does not counter that an idle, decadent mentality will have curbed growth everywhere.
This was strategically planned with EU as part of bringing back production locally, similar to CHIPS Act in the US.
And it's not like US has companies doing own manufacturing outside of Intel. CHIPS specifically wanted to address that.