A hot potato: Taiwan is home to some of the most important companies in the global technology industry. However, its political status remains contentious, with China actively seeking to influence and ultimately annex the country. This effort is driven by a well-oiled propaganda machine that speculates about Taipei’s diplomatic and business activities.
China has accused Taiwan of trying to sell off its thriving semiconductor industry to the United States, claiming that Taipei is essentially handing over control of TSMC to Washington as a “souvenir.” In exchange, Taiwan would supposedly secure political support from the new US administration against Beijing’s influence.
Zhu Fenglian, a spokeswoman for China’s Taiwan Affairs Office, recently suggested that TSMC could soon become the United States Semiconductor Manufacturing Co. However, she provided no evidence to support this claim and accused Taiwan’s ruling Democratic Progressive Party of seeking assistance from “external forces” to achieve full independence from Beijing.
Chinese authorities further alleged that Taiwan is using its semiconductor industry as leverage to gain explicit political backing from Washington. Fenglian also speculated that TSMC has been in discussions with Intel to acquire a stake in the company. However, neither TSMC nor Intel have confirmed these claims, and the Taiwanese government stated that it has no information about any new overseas investments planned by TSMC.
“This sort of shameless selling out of Taiwan is in actuality pandering to the United States,” Fenglian said.
TSMC is one of the few companies capable of transforming microchip designs into physical silicon products, providing large-scale manufacturing capabilities. Some of the world’s biggest technology firms, including US giants like Apple, Nvidia, and AMD, rely on the Taiwanese foundry to produce the chips that power smartphones, computer CPUs, and GPUs for consumers and enterprises alike.
In response to Beijing’s accusations, Taipei authorities have issued an official statement refuting the claims. They emphasized that TSMC is a vital pillar of Taiwan’s economy and dismissed suggestions that the US is acting as an unwavering political ally. Instead, they described Washington as an increasingly adversarial entity due to shifting policies under the Trump administration.
Taiwan is now actively working to address the challenges posed by these new policies, with government officials seeking collaboration with industry leaders to maintain the country’s dominance in the global tech sector.
Despite Trump’s aggressive stance on business, politics, and diplomacy, Taiwan’s geopolitical situation remains deeply complex. While Washington has historically supported Taipei – offering both political backing and military aid to counter China’s influence – the evolving US-Taiwan relationship is far from straightforward and will likely continue to be a delicate balancing act in the years ahead.
