Andy Grove explained this very clearly in his book. By the way, the parallel works if you replace Japan with China in the video. In the late 1970s and 1980s, Japan initially reverse engineered memory chips, and soon it became impossible to compete with them. The Japanese government also heavily subsidized its semiconductor industry during that period.

My point isn't to take a side, but simply to highlight how history often repeats itself, sometimes almost literally, not rhyme.