To all those saying that those companies can afford it themselves, remember that there are reasons they don't. The economics don't add up. Companies tend to do what is in their economic interest to do. Something like this can change the economics, which could be a good thing.
Automotive chips for example tend to be produced on older nodes, not fancy 14nm and below at TSMC. I'm not talking about SoC used in infotainment but all the micro controllers all over the car.
There is really zero incentive for a chip maker to expand capacity of old nodes since they are obsolete in some sense. It doesn't pay to upgrade to a new node without a product that demands something from the new node, and even then it's still an obsolete node. Think 130nm, 90nm, or even 45nm, the world could use more capacity at all of those but would you really want to invest heavily in any of those?
I suspect the end game for most of the industry is commodity priced chips at every "last node" where that term means the last node that doesn't require X, and X is a technology change like immersion lithography, multi-patterning, material change, or EUV. With that kind of environment nobody can afford to increase capacity much.
I'm not arguing for government funding here, just pointing to what I suspect is one of the problems.