Eric Demers can’t remember how many pseudo–Silicon Valleys he has seen around the world while traveling for Advanced Micro Devices. The globe’s second-largest microchip designer and producer (after Intel), AMD was created 40 years ago in the authentic Silicon Valley in California. Demers, the firm’s chief technology officer, has no intention of moving. Across the world, he points out, private and public attempts to create new Silicon Valleys have achieved only “pale copies” of the original. That original has remained the undisputed cradle of high-tech and communications innovation. Historic leaders like Hewlett-Packard and Intel have stayed here; more recent giants...