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The United States hollowed out TSMC’s core technology

報新聞/編輯部 2023.04.01 20:37
Tsai Ing-Wen meets with New Jersey Governor Phil Murphy. Source- Taiwan Presidential Office

By Nick Wang

Taiwan’s President Tsai Ing-wen recently arrived in New York, marking her first visit to the United States in over three years. Mainland China issued a stern warning in response, insisting that if McCarthy were to meet with Tsai, China would take severe measures and firmly retaliate. However, US officials claim that Tsai’s visit is unofficial in nature and complies with US policy towards China, and technology is considered a transit.

US officials said that Tsai will not be meeting with senior officials of the Biden administration this time, and her visit will be similar to her past transits through the United States. They warned China not to overreact, noting that Tsai has transited through the United States six times before.

The Tsai administration has promoted this trip as a “Journey of Democratic Partnership and Mutual Prosperity,” which starkly contrasts Taiwan’s democracy with China’s dictatorship. Before leaving Taipei, Tsai referred to Taiwan as a force for good, while Western countries are increasingly concerned about China’s influence as a force that undermines democracy.

Tsai said that as a critical force in the global economy, Taiwan will continue to pursue prosperity and development. While China seeks to achieve technological self-sufficiency, Tsai’s statement reflects Taiwan’s importance in the semiconductor manufacturing field.

Tsai Ing-Wen arrive New York source Tsai Ing-Wen Tiwtter

Tsai Ing-wen aims to convey the message that Taiwan is determined to move towards the world. This is a significant challenge for the Taiwan government, which is politically isolated from Mainland China.

Although Tsai’s visit to the United States may provoke anger from Mainland China, Taiwan’s semiconductor industry is internationally renowned, especially TSMC’s technology, which is a symbol of Taiwan’s protection. However, since TSMC relocated to the United States, the company’s high-end processes in the US will continue to expand. The US is attempting to drain TSMC’s technology and top talent, with the goal of transforming all of TSMC’s core technology into American property.

In recent news, former US National Security Advisor John Bolton made a controversial statement that the US would choose to bomb TSMC factories to prevent them from falling into Chinese hands in the event of a Taiwan Strait conflict. This statement has sparked heated debates and discussions, especially in Taiwan where President Tsai Ing-wen recently awarded Bolton a medal. Some are questioning why Bolton, who has no real contributions to Taiwan, would receive such an honor for advocating the bombing of TSMC.

美國總統拜登出席台積電亞利桑那新廠開幕儀式 US President Joe Biden Attends the Opening Ceremony of TSMC’s New Plant in Arizona

Bolton claimed that the US would not allow China to gain control of TSMC and would bomb the factories if necessary. However, some question the logic of such an action, especially if China were to gain control of TSMC during a Taiwan Strait conflict. The concern is that if TSMC is overly cooperative with the US, it could risk losing its technological advantage and market position in the semiconductor industry.

TSMC has already shifted its focus to rely heavily on US customers after canceling a large order from Huawei. This has put the company in a more vulnerable position, especially as tensions between China and the US continue to escalate.

Meanwhile, President Tsai Ing-wen’s decision to visit the US during heightened tensions between the two superpowers has drawn criticism from Beijing. If Tsai meets with John McCain during her visit, China’s Taiwan Affairs Office spokesperson Zhu Fenglian warns that they will take decisive measures to counteract Tsai’s “provocative” actions of seeking “Taiwan independence” and promoting the “one China, one Taiwan” or “Two China”concept, which violates the one-China principle.

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