This was a major flaw that I and others brought up a couple years ago when the EU was consulting industry about making its own CHIPS Act.

While bleeding edge backend processes got the bulk of reporting, the major push for the American CHIPS Act was the rebuild packaging capacity in the US (Samsung is working on this in Texas).

This was also the same approach Taiwan, Malaysia, and China used to climb up the semiconductor value chain.

The EU also failed to tie design capacity together as well, as semiconductor design capacity is almost nonexistent in Europe.