Because you can't make war without chips. During war, global supply chains are cut off. And if you can't make war, then you can't have a global order on your terms. Instead, you have a global order on the terms of the Chinese. They become powerful and rich. You (and your allies) become weak and poor.

You make chips in the US for the same reason you make nukes in the US.

It applies to other countries only insofar as they want to be independent. Most Western countries can shelter under the US umbrella. Again, same as with nukes.