The only players in the space globally are TSMC, Intel, and Samsung.
The US has many fabs that are on par with Chinese fabs.
Had they been allowed to buy from ASML and other leading manufacturers of manufacturing equipment, they would have had better chances to compete with TSMC than Intel.
Even with the current sanctions, now when Gelsinger has been forcefully retired, which raises serious doubts about the viability of the Intel 18A CMOS process, which was the bet of Gelsinger for restoring the competitiveness of USA, this increases the chances for China to reach a point when they will have better semiconductor fabs than USA, which would not be good.
The hope that nobody will be able to make photolithography equipment competitive with ASML is likely to be an illusion identical with the belief of Intel from 10 years ago that nobody can make CPUs competitive with theirs.
the 8bn is more of a pointy stick at this stage to try and get your 56 year old failing chipmaker to do something besides profiteering (buybacks layoffs and mergers.) Its a wasted effort. short of nationalizing Intel, the US is going to lose a crown jewel of its technological advantage solely due to mismanagement.