Technology

I have a hunch you took this personally. Nah, I must be hallucinating.

socialists are even worse than capitalist

Their historic record is considerably worse. I don't even need to bring up gulags, mass starvation and the abysmal living and human rights conditions of every Socialist regime throughout history to support this point (but it doesn't hurt).

This does not mean that pure capitalism is fine either (I used to consider myself a smug and enlightened centrist - can you tell?), but it tends to work the best with a fair bit of socialism injected in key areas (social safety net, high taxes on wealth, strong regulations and institutions, robust democratic decision making, lots of economic freedom and high social mobility), as in the Nordic model, which is arguably the best thing humans have come up with so far.

extremely inefficient chip production collapsed Soviet Union economy

I didn't say that, but it was definitely a strongly contributing factor. I mentioned East Germany in particular, since it spent a fortune on setting up a competitive chip industry to achieve parity with Western and Japanese companies, but failed. The debacle that was their infamous 1 MBit chip, which cost 1 Billion Ostmark to develop (at a time when the country was struggling with high debts it owed to West Germany), but never achieved more than 20% yields in pre-production and was never production-ready illustrates just how hopeless the endeavor was. By the time the chip was in said pre-production state, Japan was already producing 4 MBit chips en masse, at economic yields, of course. I can't find the numbers on how much of the state budget went into this, but it was a considerable portion, at the cost of everything else. Literally their hail Mary.

Ironically, these investments did pay off in the long run, just not for them: The area where the East German government concentrated its chip production is now known as the German silicon valley. Investments into education and research in particular laid the groundwork for the current and very competitive market-driven chip industry and other IT companies that have settled there.

current-day tech giants as desperate today in attempt to save “their economic system” as Soviet Union and East Germany were in '70s and '80s?

No. Current-day tech giants are in search of something that promises them more perpetual growth in a finite world, where almost all viable technological niches are already saturated. Smartphones are a solved issue: Everyone has settled on glass rectangles with high-res touchscreens, the hardware and software for them is so mature that even ten year old devices are still sufficient today. Gimmicks like foldables are expected to remain fringe. Same with conventional PCs and laptops: Times when a device was obsolete after four years or sooner are long over. Cloud services and virtualization have similarly reached their peak, to the point that there's a counter movement back towards local IT.

All of this means that easy avenues for more growth are already clogged up, so after some brief excursions into crypto and NFT, earlier and much smaller bubbles, it's AI with its promise to replace costly human white collar labor with cheaper software that doesn't talk back, doesn't form unions or have uppity ideas about redistributing wealth or getting rid of greedy CEOs. Digital slaves, if you will, ideally as intelligent or more intelligent than humans, but without any ability to shape its own destiny. It's not happening, of course, just as delusional as trying to automate yourself out of the inherent issues of centrally planned economies, but everyone needs to pretend that it might one day, because their livelihoods depend on it. They have invested too much, are in too deep to pull out, are afraid that if one of them does, the house of cards comes crashing down.

I will not pretend that any of this is particularly insightful, but since you appeared to have struggled with the historic parallels, I thought I'd elaborate on each point a little. I hope this doesn't cause you any additional pain, but if it does, you should be able to deal with it as a strong, rugged Socialist individual used to hardships in service of a better future. No pain, no glorious workers' and peasants' revolution, am I right?

How does a defensive alliance restrict economic systems?

It’s literally the next industrial or atomic revolution.

/s?