We (the US, as well as Europe) do have a huge problem: over the past 30 years the production (research, design, manufacturing, ) for most commercial products has shifted to Asia. This includes semiconductor chips - critical building blocks for many important commercial and military products. So it is essential that we reduce our reliance on these other nations for semiconductor chips (and related electronic parts).
Providing government money to the US semiconductor producers might be required, but that must be part of an overall strategy that addresses the root causes of the continuing production shift to Asia. If all this bill does is provide cash to US companies it’s hard to see how it will solve the problem.
Here's one key cause of the production shift to China: Since the mid-90’s China has been dealing directly with individual US companies, insisting that if they want the right to sell their US products in China (a huge growing market) then the US company must do some joint product development (research, design, manufacturing, etc.) with emerging Chinese companies. The US company wants or needs the business in China so it agrees to do what China wants (e.g., create a research lab in China, open a joint a design center in China, build a manufacturing plant in China, etc.). This has been happing a lot and in the open for 30 years. I have heard from involved US workers that Chinese workers in these collaborations tell their US coworkers “we will learn from you and then do it better.” In some cases, a US company decides to outsource a strategic building block or sell a strategic business unit.
How will our nation stop or reverse the overseas transfer of know-how and production for strategic commercial products? If the problem is just a lack of funding then we are in real trouble. Remember that the US now has more that $30 trillion in national debt to other nations, including several trillions of debt to China alone. China can spend far more than we can on this stuff. $79B spent over 10 years is a trivial amount for China. We need a smart national strategy that is forward looking, invests wisely, and plays to our strengths. Maybe some kind of bi-partisan board could be established to develop the strategy and its high level implementation. Existing corporations and politicians are not well-suited for this because they are forced to be short-tern focused.