The supply chain for military hardware is already under heavy scrutiny. I don’t think the CHIPS Act is about security; it’s about onshoring production so the US can avoid caring about Taiwan.

This is basically already how it is.

This is also why nobody ever wants to cut the DoD budget, it's basically the backbone of American manufacturing for everything. All the stuff our company makes for the military needs to be US made, despite us being able to get the same stuff from China for 1/10 the cost.

It's also a kick-your-door-down-and-go-prison offense if you try and skirt this. My company knows that first hand (unintentional, but the DoD doesn't care)

It is highly likely that that was considered but discounted for being suboptimal.

The military may not be a large enough customer to make such demands. Or perhaps a handful of companies would do it at 100x the cost of similar civilian products. It would turn into another $10k toilet seat fiasco.

Good way to force Intel/all remaining chipmakers to move its headquarters to other country.

...and then stop buying military hardware for 5+ years, until these US-made chips are available?

Purchase orders like this happen years out. Before the deliveries dry up, Intel's cash flow will dip and investors will riot until Intel is ready to do business in the US.