Congress has been deadlocked over providing a $52 Billion subsidy for the US semiconductor industry. Probably due to competing special pleadings of various lobby groups.
I recommend a different approach to ensuring the United States has the necessary facilities to make defense critical semiconductors. Generic subsidies to industries tend to miss the mark, and just become another form of crony capitalism.
The military procurement offices should put in MilSpecs that require certain components be built in the United States. The cost of meeting those specifications would then be included in cost quotations. If a company needs $10 Billion to build a plant to supply the requested item, then it would come from the Defense Department budget, rather than be hidden in a subsidy to the semiconductor industry. Companies in the US could use their ingenuity to satisfy the requirements, and thus provide lower costs.
