They, whether it be government or private industry or both, have invested in that particular industry and benefit now from years of past investment in manufacturing and research and labor training I’d imagine. So, they can now produce the chips needed in volume at a good cost. It’s the same as any other manufactured good and why that good gets produced in X country instead of Y country. With the ability to trade inernationally the last three decades, industries can seek the best nation for their business and then export/import as needed. If global trade regresses, you can expect to see more localization of production but also likely higher costs per unit since the new producers will need to cover startup costs and may only be able to sell locally too, meaning there are fewer customers to spread those costs over.
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