Well, another way to look at it is Californians have calculated the real cost.
You're suggesting that dozens of European and Asian countries where semiconductor manufacturing is growing are all run by morons, while California's ridiculous cast of politicians has figured out things perfectly?
Yes, and it's obvious that they have. The Los Angeles basin has gone from one of the most polluted regions in the world to relatively clean in 30 years, saving residents billions in health care costs. This is despite the basin being probably one of the worst places to build a city in terms of air quality: LA is basically a giant bowl that gets far less wind on any given day than most other similar cities. Compare to other cities around the world where pollution is a large and growing problem. Around here the only real remaining problem is the port, because we still have to cater to every other states' and countries' dirty, inefficient, leaky ships and trucks, and the water, because water politics have 150 years of bureaucracy weighing them down, and there remains a lot of complicated, expensive work to do to keep out gigantic ag industry satisfied.
About the only reason you'd want a FAB plant in your state that wasn't willing or able to comply with California's environmental laws is if you want to be able to boast about how you 'created more jobs' in the leadup to the next election, and didn't give a shit what the real cost to the state would be over the next 30 years.
You're suggesting that California politicians are acting out of concern over the fiscal health of the state 30 years from now? I haven't heard anything more ridiculous than that in a long time.
California politicians didn't have anything to do with the law; it was voter-initiated. The politicians are still as short-sighted as ever; they're the ones who negotiated the union contracts at around the same time that back-loaded so much in retirement benefits 30 years down the line without allocating any money to pay for it that the state nearly went bankrupt a few years ago. Voter initiatives cause a lot of headaches, especially for politicians who have to live with them, but it's largely because of that initiative system that California can boast that it's doing really well for itself, despite getting screwed by our conservative national government (the state only gets back about 50 cents in benefits and funding for every dollar paid in federal taxes; if the state seceded from the US we'd pay off our debts in a few years, but then the rest of the country would go bankrupt in about the same amount of time so nobody really wants that to happen.)