The point is "I dunno, do something" when you don't even understand what you are talking about is literally what trump was trying to do.
There are already plenty of alternatives to nVidia and MUCH more successful efforts to even avoid the kind of "Well, you COULD use libre office but it won't support what we do to the docx format next week" stupidity. And... they all basically depend on TSMC which is even funnier.
Similarly, if you actually understand what nVidia's (hardware) product is, you will know why it fundamentally doesn't make any sense to split it up. Because the only way that works is "Okay, build all new fabs, all new research divisions, all new software divisions, etc to make the exact same product but with a lot more waste because you need perfect yields".
No. The solution to this is to incentivize the competition to make it actually competititon. Intel is... moving on. But we already see government orgs around the planet prioritizing AMD purchases. Sometimes just for cost reasons, but it encourages those vendor agnostic shims to continue to exist and, hopefully, will increase AMD's market share.
But "I dunno, do something to make it go away" is the kind of stupidity that we would expect from the president of the united states. If you can't contribute to a conversation then... don't. Or, better yet, actually ask questions rather than immediately jumping to regulation from known compromised agencies.