On Wednesday, China accused Taiwan of attempting to hand over its semiconductor industry to the United States as a political tactic. News reports suggest that Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the global chipmaking industry, has been discussing a potential investment from Intel, although this remains unconfirmed by either party. While President Trump has criticized Taiwan for diverting American semiconductor business, Taiwan denies any knowledge of TSMC's supposed overseas investment bid.
At a press briefing in Beijing, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, alleged that Taiwan's Democratic Progressive Party was using the semiconductor industry to gain foreign support, cautioning against TSMC becoming "United States Semiconductor Manufacturing Co." Zhu further claimed that Taiwan was endangering its companies by seeking foreign alliances.
In response, Taiwan's Mainland Affairs Council emphasized TSMC's significance as a Taiwanese entity and vowed to collaborate with industry partners to uphold Taiwan's technological leadership. The statement did not delve into specifics regarding Trump's policies toward the semiconductor sector or TSMC. Despite not acknowledging Taiwan as a separate state, the United States remains a key ally and military provider to the island nation.