Yes, it is necessary if the world wants to have high-end chips manufactured more than a few miles from China. China's government has been spending billions and billions on an utterly massive military build-up. The US goal is to be able to continue to have chips, which are necessary to power almost everything else. I think what's going on is a geopolitical struggle. The US views this as a national security issue.

A good question is whether or not this will work. A big building is not the same as a working best-in-class fab.