Investing in local chip fabs is long overdue. These are incredibly important for geopolitical stability and should be distributed world-wide. We've centralized too many fabs in too few places in the search for low cost.
It is very important for national stability. A highly-interconnected global economy is arguably better at securing international stability.
And of course, as you point out, if you only optimize on the local scale and ignore the global scale, you'll also create an unstable system. Hence the failures of extreme nationalism we've seen historically.
Both cases can lead to instability because of their relationship to one another (the global system is composed of localized systems). You need to look at balance across the entire picture, which means you can't just ignore your own country and its people but you also can't ignore the rest of the world, either. It's tough trying to create a good stable global system that isn't disenfranchizing some large segment of the population.