Then there are the more overt attacks like on Alstom, Toshiba etc.
This is not a pure economical issue because it's not about efficiency, it's about have some redundancy so when things get hard, one won't just be starved to death. Afterall, it takes time for the market to adjust itself and without food, there won't be time.
And TBH, following that reasoning, that there is nuclear bomb, ground force should be cut to save cost and tax money too.
Say that you are a citizen of a country endlessly threatened by invasion from a foreign power. Is it more important for you that your country has the nuclear bomb, which means your likelihood of being turned into glass falls from 50% to 0.1%, or that your country has greater control of agricultural production, meaning that in case of disaster you won't have to pay fortunes for imported food and cut your consumption? I'd say in this case the nuclear bomb is more important.
Also, we didn't see End of the World level nuclear destruction of any country because all the great world power developed the Nuke. The US Army very seriously considered using nukes in the Korean War as well as had plans for the invasion of the USSR (See : Operation Unthinkable and Operation Dropshot). The only reason these plans weren't carried out is because the USSR and China sacrificed very heavily in order to develop their technology and achieve technological parity with the West.
Your better example is Aerospace, but there is no proven reason we need those colossal companies, and a big part of the merger drive that created them us to monopolize access to government contracts. ULA is a perfect example of that.
Arguably China have just found this with semiconductors. It was all well and good depending on TSMC, until the US blocked their supply.
You are just repeating protectionist propaganda to justify overcharging customers to benefit protected corporations.