The ideal state is some kind of bastardized hybrid, federally funded and guided but still private.

This is how TSMC rose.

It's also kinda how Samsung Foundry exists, with how Samsung is so giant and tied to SK politics that's it blurs the line with the govt.

Trump is going in the opposite direction unfortunately, regulating the shit out of them in terms of policy (tariffs, politics), yet yanking grants and "freeing" the government of them.