China Accuses Taiwan of Handing Over Chip Industry to US

China has accused Taiwan of attempting to give away its semiconductor industry to the United States in exchange for political support from Washington.

Zhu Fenglian, spokesperson for China's Taiwan Affairs Office, claimed on Wednesday that Taiwan's ruling Democratic Progressive Party (DPP) was using the island’s semiconductor sector to strengthen ties with the U.S. She alleged, without providing evidence, that Taiwan Semiconductor Manufacturing Co. (TSMC) could become "United States Semiconductor Manufacturing Co."

U.S. media reports have suggested that TSMC, the world's largest contract chipmaker and a key supplier to Apple and Nvidia, has been in discussions for a stake in Intel. However, neither TSMC nor Intel has confirmed these reports. Taiwan’s government has also stated that it has not received any overseas investment applications from TSMC.

Former U.S. President Donald Trump had previously criticised Taiwan for taking away American semiconductor business, expressing a desire for more manufacturing to take place in the U.S.

Zhu accused Taiwan of "selling out" its companies and "pandering to the United States." She claimed that the DPP was leveraging Taiwan’s semiconductor industry to seek independence and foreign support.

Taiwan’s Mainland Affairs Council responded by emphasising TSMC’s importance to the island’s economy. It stated that the government would work closely with the industry to maintain Taiwan’s leadership in advanced technology, particularly in response to U.S. policy changes.

TSMC declined to comment on the matter.

The U.S. remains Taiwan’s most significant international backer and arms supplier, despite not formally recognising its government.

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• China accused Taiwan of using its semiconductor industry to gain U.S. political support.

• Reports suggest TSMC has been in talks for a stake in Intel, though no confirmation has been made.

• Taiwan’s government stated it has not received any investment applications from TSMC.

Source: REUTERS