tsmc caught in geopolitical crossfire: beijing accuses taiwan of us chip deal

2025-02-26 tsmc

Beijing, Wednesday, 26 February 2025.
tsmc, the world’s leading chip manufacturer, faces new pressure. Beijing accuses Taiwan of offering its semiconductor industry to the us in exchange for political backing. This allegation surfaces amid growing concerns over tsmc’s strategic alliances. The company’s relationships with both the us and China are now under scrutiny. These relationships could significantly impact tsmc’s market dominance. The accusations also arrive as reports suggest potential us tariffs on taiwanese chips. The situation is further complicated by alleged us pressure for tsmc to partner with intel. This confluence of events could reshape the global semiconductor landscape.

accusations from beijing

Chinese authorities have accused Taiwan of attempting to offer its semiconductor industry, specifically tsmc, to the us in exchange for political support [1]. This accusation was made during a press conference on Wednesday by China’s Taiwan Affairs Office [1][2]. Spokesperson Zhu Fenglian stated that the taiwanese government is sacrificing the interests of its people and businesses to gain political advantages [1][2]. Zhu Fenglian also referenced concerns that tsmc could become an american company, a fear circulating within taiwanese public opinion [1][2].

taiwan’s response

Taiwan’s Mainland Affairs Council responded to Beijing’s accusations with a statement emphasizing tsmc’s importance to Taiwan [1]. The council affirmed that the taiwanese government will collaborate closely with the industry to maintain its leading position in advanced technology [1]. In January, tsmc Chairman Wei Zhejia addressed concerns about tsmc becoming an american entity, stating that it would not happen and that tsmc would continue to expand investment in Taiwan [1]. Wei Zhejia also highlighted the global economic importance of tsmc [1].

market and stock impact

Negative rumors have placed tsmc under considerable pressure [3]. On February 25, tsmc’s stock price reportedly fell to a low for the year at 1,050 new taiwan dollars [3]. This decline resulted in a market value decrease of over 1 trillion new taiwan dollars within two days [3]. Amidst these pressures, Taiwan’s economic authorities have chosen not to comment [3]. The potential for tariffs and forced partnerships add further uncertainty, impacting investor confidence [1][3].

us pressure and potential partnerships

The us government, under President Trump, has been vocal about bringing chip manufacturing back to the us [1][5]. Trump has criticized Taiwan for allegedly taking away america’s chip business and has suggested imposing tariffs [1][4]. Reports indicate that the us government is pushing for tsmc to form a joint venture with intel [1][2][3]. Three potential scenarios have emerged: tsmc establishing an advanced packaging plant in the us, a joint investment in intel’s semiconductor business, or intel taking over tsmc’s us customer orders [3].

public sentiment in taiwan

A recent poll indicated that a significant majority of taiwanese citizens oppose transferring tsmc’s advanced nanometer technology to the united states [3]. According to the poll, 88.4% of taiwanese disagree with the notion that taiwan stole america’s semiconductor business [3]. Furthermore, 84.8% oppose transferring tsmc’s most advanced 2-nanometer technology to the us [3]. This sentiment reflects concerns that Taiwan could lose its technological edge and become strategically vulnerable [5].

Bronnen

TSMC geopolitics China Taiwan