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.
1. It's reasoning a'la "It's economically inefficient therefore it's less likely to happen". In my opinions, governments are absolute experts in implementing economically nonsensical policies, international conflicts included.
2. Any link between nations can be weaponized, i.e. imposing tariffs, banning imports/exports, and so on. The greater your dependency on me the more ways I have to harm you.
3. Such weaponization will naturally harm your own citizens but you, as a decision maker, will bear very little cost.
4. The easier it is for me to replace you with an alternative the more likely I am to use that against you -- this is classic BATNA. You don't like my export quota? So what, I've got more interest than I can handle and you can build your batteries without lithium if you don't like that.