China Accuses Taiwan of Using Semiconductor Industry for US Support
China accuses Taiwan of attempting to “give away” its semiconductor industry to the United States in exchange for political backing. The claim comes amid reports that Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker, is in discussions over a possible stake in US chip giant Intel.
China’s Criticism of Taiwan’s Semiconductor Strategy
Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, alleged that Taiwan’s ruling Democratic Progressive Party (DPP) was leveraging the semiconductor sector for political gains. Speaking at a press conference in Beijing, Zhu claimed, without evidence, that Taiwan was turning TSMC into a tool for securing support from Washington.
She went further, suggesting that Taiwan was “selling out” its own companies to the United States, warning that TSMC could become “United States Semiconductor Manufacturing Co.” China has long opposed Taiwan’s deepening ties with the US, especially in technology and defence sectors.
Taiwan, however, maintains that investment decisions are made independently and in the best interests of its economy. The island’s Mainland Affairs Council reaffirmed TSMC’s importance to Taiwan, stating that the government would work with industry leaders to keep its leading position in advanced technology.
US-Taiwan Semiconductor Relations
TSMC plays a critical role in the global semiconductor supply chain, producing chips for major companies like Apple and Nvidia. Reports in US media have suggested that TSMC may be negotiating a stake in Intel, though neither company has confirmed this.
Meanwhile, former US President Donald Trump has criticised Taiwan for taking away American semiconductor business, advocating for more chip production within the United States. In recent years, the US has pushed for stronger domestic chip manufacturing to reduce reliance on foreign suppliers, particularly amid geopolitical tensions with China.
Taiwan’s Response and Growing US Ties
Taiwan has not confirmed any TSMC-Intel investment discussions. The government stated that it had not received any formal application from TSMC regarding overseas investments. However, it reaffirmed its commitment to working with industry leaders to address challenges posed by US policies affecting the semiconductor sector.
The United States remains Taiwan’s most significant international ally, providing military support and economic cooperation, despite not formally recognising the island’s government. As China continues to pressure Taiwan on multiple fronts, the semiconductor industry remains a key point of contention in the evolving geopolitical landscape.
With inputs from Reuters
