I think it requires a lot of mental gymnastics to dismiss the semiconductor industry as anything but critical to all modern economies and militaries. I think it takes similar willful blindness to lump "encourage investment" in with "bring on shore in the name of national security" as if they are exactly the same.

We do a lot of corrupt/wrong subsidizing in this country but that doesn't mean throw the baby out with the bathwater.

If I had a magic wand we'd still have tariffs and subsidize critical infrastructure and expertise - for example I find it very surprising that we don't make sure we always have wartime level of doctors and farmers trained and ready.