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My guess it that it is like a refinery, building the factory takes too long with a large capital outlay. For instance, it may take a year or two to build and cost (let's guess) $500M. Now in that time, let's say all the existing players ramp back up (or expand!!) and there is no shortage. You now are producing chips that are cheaper elsewhere and it is hard to recoup your investment. Also, you may be limited on where you can find people with expertise in this area.

In theory you could wire up an old pentium or 386 and program it to do the same thing some of these chips do but you have the same problem there. No on has a 5M supply of 386s just sitting around in good condition.

The minimum cost of entry is in the hundreds of millions to billions, it's not especially environmentally friendly, and you're competing against what would normally be fully-paid-off old production lines from the incumbents.

There's a thriving small business design industry, but the manufacturing is a classical capital-intensive manufacturing business that also requires very specialist staff.