There's tons of advanced chip manufacturing in the USA. There are fabs all over the USA for companies like Intel, Infineon, Texas Instruments, ON, NXP (Motorol

There's tons of advanced chip manufacturing in the USA. There are fabs all over the USA for companies like Intel, Infineon, Texas Instruments, ON, NXP (Motorola). It's the country's fourth largest manufacturing export. TSMC leveraged a huge gap in the market early on. Since most fabrication plants were owned by companies that also designed and sold chips, it was hard to get contracts for production volumes. This made it basically impossible to be a fab-less design company, like nVidia, because Intel/TI/etc might not produce your chips if they didn't have spare capacity. With a foundry, that's not a concern.