The US produces a lot of chips, they just aren’t the consumer market leader. The US also prototypes the revolutionary new processes, i.e. 65nm-> 20nm -> …-> 5nm -> 3nm processes all started in the US. But once the process has been proofed, and it’s time for volume they send it to Israel or Taiwan to be mass produced because it’s cheaper and for no other reason.
The US produces a lot of chips, they just aren’t the consumer market leader. The US also prototypes the revolutionary new processes, i.e. 65nm-> 20nm -> …-> 5nm -> 3nm processes all started in the US. But once the process has been proofed, and it’s time for volume they send it to Israel or Taiwan to be mass produced because it’s cheaper and for no other reason.