Taiwan is home to the world’s largest semiconductor factory, and its biggest client base is U.S. companies. According to Reuters, this close relationship has raised concerns in China, which claims Taiwan as its territory. Beijing now alleges that Taiwan’s semiconductor industry is being handed over to the U.S. as a “souvenir”, further escalating tensions between the two superpowers.
The controversy began with rumors in the American press about potential Intel investments in TSMC. However, neither company has officially commented, and the Taiwanese government has denied knowing of such a deal.
At a recent conference, Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, claimed—without providing evidence—that some people in Taiwan fear the island is being turned into a manufacturing hub for U.S. interests.
“For their own selfish gains, the authorities of the Progressive Democratic Party have complied with external demands, using Taiwan’s semiconductor industry and its leading companies to gain foreign footholds for independence—even giving them away as souvenirs,” Zhu stated.
The remarks highlight China’s growing frustration over Taiwan’s strategic role in the global semiconductor supply chain, particularly as U.S.-Taiwan ties continue to strengthen.
Taiwan comments on the subject.
Taiwan’s Business Council said only that it is responding to Donald Trump’s new market policies:
“In response to the challenges imposed by Trump’s new policies regarding our semiconductor sector and TSMC, our government will work closely with the sector to maintain Taiwan’s leadership position in the field of advanced technology.”
This tension is delicate, and as much as a conflict itself may not happen, there is a chance of shaking the entire semiconductor production chain of the world, which is widely concentrated in China and Taiwan.
