China Alleges Taiwan Is “Gifting” TSMC to the US Amid Shifting Semiconductor Alliances
In a bold statement reflecting the escalating geopolitical dynamics in the semiconductor industry, a spokesperson for China’s Taiwan Affairs Office has accused Taiwan of effectively “giving away” its semiconductor prowess to the United States. According to the official comments, Taiwan’s semiconductor giant, TSMC, is being positioned as a “souvenir” intended to secure political favor with the Trump administration. This narrative is driven by TSMC’s aggressive expansion in the US market, where the company is rapidly scaling investments and shifting production of cutting-edge chip technologies away from Taiwan.
China’s criticism centers on TSMC’s strategic move to boost US chip ambitions, notably with major investments in its Arizona facility. Recent reports indicate that TSMC has already initiated 4nm manufacturing operations in Arizona, with ambitious plans to transition toward 2nm production in the coming years. Such steps underscore the company’s commitment to supporting US semiconductor strategies—a development that has not gone unnoticed by Beijing. The Chinese official warned that if TSMC’s expansion into the US continues, the company might eventually be rebranded as “United States Semiconductor Manufacturing Co,” symbolizing a complete pivot of Taiwan’s industry alignment.
This contentious shift comes amid a broader geopolitical tug-of-war, with TSMC caught in the crossfire. On one side, remarks from US President Donald Trump suggest that Taiwan is, in effect, appropriating US chip technology and should therefore be held accountable. On the other side, China criticizes Taiwan’s Democratic Progressive Party for leveraging its semiconductor industry as a bargaining chip in the pursuit of political independence. The implication is that Taiwan is using its powerful tech sector to secure foreign support and carve out strategic advantages on the global stage.
The Reuters report on this matter provides further insights into China’s claims and the underlying tensions driving these accusations
For now, TSMC’s deepening ties with the US appear to be part of a broader strategy to create a “backup production” region in case of escalating cross-strait tensions. As global semiconductor dynamics continue to evolve, industry watchers are closely monitoring whether these geopolitical maneuvers will lead to a long-term rebalancing of power away from Taiwan.
What are your thoughts on China’s claims about TSMC’s alignment with US semiconductor ambitions? Do you see this as a strategic move for global chip production or a sign of deeper geopolitical shifts? Share your insights in the comments below!
