This research paper analyzes semiconductor industrial policies in Taiwan and Germany through the lens of Hood's NATO framework (nodality, authority, treasure). It introduces two hypotheses, synergy and context-moderation, to explain variations in policy effectiveness. Using a most-similar systems design, the paper shows how administrative capacity moderates the success of policy tools and highlights the trade-offs between decentralized agility and corporatist synergy. The findings emphasize that effective industrial policy depends less on the quantity of instruments and more on their alignment with state capacity. The paper contributes to debates on state capacity, policy implementation, and the geopolitics of strategic industries.