There are two parts to making chips: architecture (design) and process (how it's manufactured). Intel does both but eg Apple only does design and outsources manufacturing to other companies.
There are lots of different chips ranging from slow, energy efficient, and cheap microcontrollers, to fast, energy hungry, and expensive high performance computing clusters. Intel makes the fast ones, and had the fastest chips from the late 1990s to the mid 2010s. Since then, a Taiwanese company has had the fastest chips which go into iPhones, Nvidia graphics cards, and AMD cpus.
Building a fab (manufacturing plant) to make the fastest chips which require features shorter than 7nm (billionths of a meter!) requires billions of dollars in up front investment. It's mass scale manufacturing at some of the lowest levels anything has ever been created at.
The US gov't is afraid that company which makes the fastest chips in Taiwan (which is not recognized as an independent country, but is effectively self governing, but China claims is theirs, it's complicated yes), could be under Chinese control some day. The Military Industrial Complex don't want the US tech sector or US defense tech to be beholden to China, and US companies (Intel) want government funding to build expensive factories. Thus the CHIPS act.
There are lots of different chips ranging from slow, energy efficient, and cheap microcontrollers, to fast, energy hungry, and expensive high performance computing clusters. Intel makes the fast ones, and had the fastest chips from the late 1990s to the mid 2010s. Since then, a Taiwanese company has had the fastest chips which go into iPhones, Nvidia graphics cards, and AMD cpus.
Building a fab (manufacturing plant) to make the fastest chips which require features shorter than 7nm (billionths of a meter!) requires billions of dollars in up front investment. It's mass scale manufacturing at some of the lowest levels anything has ever been created at.
The US gov't is afraid that company which makes the fastest chips in Taiwan (which is not recognized as an independent country, but is effectively self governing, but China claims is theirs, it's complicated yes), could be under Chinese control some day. The Military Industrial Complex don't want the US tech sector or US defense tech to be beholden to China, and US companies (Intel) want government funding to build expensive factories. Thus the CHIPS act.