No single country is capable of producing the newest chips end to end. Lithograph machines, raw materials, clean room builders, educated workforce, and the scale to do each of these economically are simply not available in one location.
By the time you could produce such a focus of the industry, it would already have moved on and require different inputs that are not in that country.
I think that's what the person you're replying to is saying. The government should subsidize domestic production because it's a prestige issue for the nation. Sort of like having an aircraft carrier group but in the form of economic power.
It's not that simple. The components of a chip go through something like 40-50 countries, and include tens of thousands of suppliers. Involved in this are some of the most sophisticated technologies known to man.
To centralize all of this in one country is most likely impossible. It's not even a matter of throwing money at it. $100 billion won't get you there.
By the time you could produce such a focus of the industry, it would already have moved on and require different inputs that are not in that country.