“They need their own fabs” is a very current events-biased read of the situation.

You can easily end up like AMD or Intel spending years with your own fab that’s uncompetitive.

One of the best things that ever happened to AMD was spinning off their fabs.

Intel only recently righted their ship after spending years with fabs that couldn’t keep up with competition, and even Panther Lake still contains some TSMC silicon.

The AI boom is inevitably not going to last forever. Either demand will subside or production will increase. High prices in tech rarely stick around.

You can easily end up like AMD or Intel spending years with your own fab that’s uncompetitive.

You could.

Or you could have no fab and no supply of chips for your business.