I'm going to go ahead and say one of the problems is lack of vertical integration.
Please forgive me, I don't want to make this about politics per se and I don't want this comment to come off as attacking or give off an "and yet you participate in society" vibe, but...
I was under the impression that you were nominally on what we would call "the left" and that "vertical integration" was one of the seven deadly sins, economically speaking. Given a large amount opposition to that in the western world over the last thirty years or so, how was anyone supposed to plan for the situation we're in today?
(On another note, from an economic rather than political point of view, if you look at how AMD and Intel have functioned over the last 10-20 years, AMD's choice to divest their fabs seems to have been a very good decision on their part and I say this as someone who thought it was a terrible choice and a death knell for the company at the time).