China Accuses Taiwan of Surrendering Semiconductor Industry to U.S.
In a recent development, China has accused Taiwan of intending to transfer its semiconductor industry to the United States as a “souvenir” to gain political backing from Washington. This assertion follows media reports suggesting that Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading contract chipmaker and a key supplier to tech giants like Apple and Nvidia, is engaged in discussions to acquire a stake in Intel. However, both TSMC and Intel have not confirmed these reports, and Taiwan’s government indicates it has not received any official information regarding such an overseas investment application from TSMC.
China’s Allegations Against Taiwan’s Semiconductor Strategy
During a regular press briefing in Beijing, Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, claimed, without providing evidence, that there is concern within Taiwan that TSMC might transform into the “United States Semiconductor Manufacturing Co.” She stated, “In order to seek selfish gain, the Democratic Progressive Party authorities have freely made demands from external forces, using Taiwan’s semiconductor industry and powerful companies to get a … .” Zhu’s remarks suggest that Taiwan’s ruling party is allegedly leveraging its semiconductor sector to pursue political objectives, including seeking independence, by aligning more closely with foreign nations, particularly the U.S.
Taiwan’s Response to China’s Accusations
In response, Taiwan’s Mainland Affairs Council emphasized TSMC’s significance, stating that it is an “important Taiwanese company.” The council highlighted the government’s commitment to collaborating with the industry to maintain Taiwan’s leadership in advanced technology sectors, especially in light of evolving U.S. policies affecting the semiconductor landscape. This stance reflects Taiwan’s dedication to preserving its technological edge and economic interests amidst geopolitical challenges.
U.S. Criticism and Geopolitical Implications
U.S. President Donald Trump … criticized Taiwan for allegedly diverting American semiconductor business, expressing a desire for more domestic manufacturing within the United States. This perspective aligns with broader U.S. efforts to bolster its own semiconductor production capabilities, reduce reliance on foreign sources, and address supply chain vulnerabilities. The interplay between Taiwan’s pivotal role in the global semiconductor supply chain and U.S. strategic interests underscores the complex geopolitical dynamics influencing the technology sector.
China’s claims and the ensuing responses from Taiwan and the U.S. highlight the intricate relationships and tensions surrounding the semiconductor industry, a critical component of modern technology and international trade. As these nations navigate their respective economic and political priorities, the global semiconductor landscape may experience significant shifts influenced by policy decisions, strategic alliances, and competitive positioning.
