https://en.wikipedia.org/wiki/Backyard_furnace
It's a parallel. Mao tried to create industry in people's backyards. It took people away from food production, destroyed existing valuable metal products, deforested the areas, and for all that effort, resulted in product with quality so bad it was unusable.
While it would probably also be more like input material production, silicon ingots and wafer slicing and such, I'm sure the quality would equally be shit enough to be unusable. Especially since metalwork tolerances are usually in micrometers at best, but microchips are in the nanometers.
Yes, I understand there are orders of magnitude of complexity between the two. And no, it's not remotely feasible, like I said, they wouldn't be any good. If anything, I'm agreeing with you that no system of government, or system of economics for that matter, would make it practical.