Considering how the US government is currently burning its agencies to the ground, I’m pretty sure that would be even worse.

The ideal state is some kind of bastardized hybrid, federally funded and guided but still private.

This is how TSMC rose.

It's also kinda how Samsung Foundry exists, with how Samsung is so giant and tied to SK politics that's it blurs the line with the govt.

Trump is going in the opposite direction unfortunately, regulating the shit out of them in terms of policy (tariffs, politics), yet yanking grants and "freeing" the government of them.

Should but the US won't because that's a good idea. Instead they will just let the company crash and sell the fabs to AMD creating an effective complete monopoly.