Profitability on the fab level is the wrong metric. Producing semiconductors, like producing vaccines, has large positive externalities. It enables basically the entire rest of the economy to function. These fabs could lose billions, kept alive by government subsidies, and still be a great deal for the country as a whole.
It’s hard to believe anything at the scale and complexity of a modern semiconductor fab industry could remain competitive without actually facing competitive market pressures.
I think this applies to manufacturing in general (it is good for a society to build things).
The trouble is that capturing government subsidies can become a business by itself.
As long as the subsidies are there to restart involvement I think you get the benefits without profitability. If real profitability isn't a medium-to-long-term goal, things could get messed up.
