There are plenty of people who agree with you. Unfortunately there are no lean, mean smaller rivals in American silicon manufacturing eagre to take their place. So what to do? Additionally, the American government has no idea how to go about fabricating chips on cutting-edge nodes.
There are the remnant's of Intel's battered competition from years gone by: Globalfoundries, IBM, TI, and others still. Maybe they need some incentive to get back in the game. Right now, the capital costs to build out modern fabs and carry out R&D are too high for any of them to seriously compete with TSMC or Intel.