The logic is economic autarky -- the belief that we're always better off having complete political sovereignty over every part of our supply chains than having to depend on imports for anything.
This is likely also behind Trump's trade war with Canada. His demands with Canada aren't about discirimatory tariffs -- those were negotiated away with NAFTA then re-negotiated in his first term. His demands are now infringe on Canadian sovereignty, to give US control of Canada's external trade policy, and even on its internal markets (e.g., the use of French in Canadian internal commerce). Symbolically, that's why he wants to rename Lake Ontario to "Lake America". HIs establishment of US control over the Venezuelan oil industry is his greatest foreign policy achievement -- although it's not clear he understands the legal limits on what he can do with their money.
There's a foreign and military policy angle to this too: Taiwan is absolutely critical to the US economy, so we are absolutely committed to defend them if China invades. Semiconductor autarky would mean it's not our problem.
The problem with autarky is that even if it's a good idea (which economists don't believe), you can't conjure it into existence overnight. It will take many years, possibly decades for the US to replace the Taiwan's semiconductor industry. In effect, the administration is proposing to inflict the very damage on the US economy that a Chinese invasion of Taiwan would inflict.
And, once the US has voluntarily self-inflicted that damage, China would be free to invade Taiwan.
