China on Wednesday accused Taiwanese government of using its semiconductor sector to gain U.S. support and is willing to hand over its chip industry for political advantage. China's Taiwan Affairs Office even reminded people of the rumor about TSMC's unconfirmed plans to invest in Intel, saying that Taiwan Semiconductor Manufacturing Co. (TSMC) could become United States Semiconductor Manufacturing Co. (USMC), reports Reuters. Taiwan denies the accusations.
"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 foot in the door to relying on foreign countries to seek independence, and even give them away as souvenirs," said Zhu Fenglian, China’s Taiwan Affairs Office, according to Reuters.
China, which claims that Taiwan is a part of the People's Republic of China, regularly runs military exercises near the island that could end up with a blockade of Taiwan. This would be devastating not only for Taiwan, but also for all of its trade partners. Taiwan's government naturally seeks support of foreign powers, such as the U.S. But to get it, it has to collaborate with them, something that mainland China calls undermining Taiwan's own interests and prioritizing foreign support over economic independence. Zhu suggested that Taiwan's political leadership is "selling out" Taiwan's industry and major corporations, effectively making them tools for diplomatic maneuvering.
Taiwan's Mainland Affairs Council countered these accusations, calling TSMC a crucial national asset. The council stressed that the government is committed to preserving Taiwan's leadership in advanced semiconductor production, though it did not provide further details on specific policies or actions. Earlier this year, Taiwan's government formally allowed TSMC to import its latest fabrication technologies to its overseas facilities. However, TSMC has yet to announce any plans to produce chips on its N2 (2nm-class) fabrication process in the U.S.
The U.S. has long sought to strengthen its domestic semiconductor manufacturing. And in recent years Intel, Samsung Foundry, and TSMC have built (or at least began building) new advanced fabs in the country. The U.S. remains a key partner for Taiwan, providing diplomatic backing and arms sales. So while Taiwan's government may not be happy with TSMC investing overseas — in the U.S., Japan, and Germany specifically — it's arguably the best way for the company to meet the needs of its customers.
