China Accuses Taiwan Of Handing The Chip Industry To The US

China on Wednesday 26 February accused Taiwan of trying to hand over its semiconductor industry to the United States as a "souvenir" and using it as a tool to gain political support from Washington.

US media reported that Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and major supplier to companies like Apple and Nvidia, is in talks to own shares in Intel.

Neither TSMC nor Intel have confirmed the report, while the Taiwanese government has stated that it has not received any information regarding foreign investment applications from TSMC.

US President Donald Trump has previously criticized Taiwan for taking on a semiconductor business from America, and he wants the industry to produce more domestically.

Speaking at a regular press conference in Beijing, Chinese Taiwan Affairs Office spokesman Zhu Fenglian said without providing evidence that Taiwanese people were concerned TSMC could turn into "United States Semiconductor Manufacturing Co".

"For the sake of personal interest, the Democratic Progressive Party (DPP) authorities are freely asking for help from external powers, using Taiwanese semiconductor industries and strong companies to find ways to rely on foreign countries to achieve independence, even handing them over as souvenirs," Zhu said, referring to the ruling party in Taiwan.

Although China claims Taiwan as part of its territory, despite being firmly rejected by the Taipei government, Beijing does not have the authority to decide on foreign investment approvals made by Taiwan.

Zhu added that Taiwan is trying to "sell" its local companies.

"Sales of this kind of shameless Taiwan are actually just a form of compliance with the United States," he said.

In its response, Taiwan's Mainland Affairs Council said in a statement that TSMC is an "important company for Taiwan".

"In facing the challenges that arise as a result of Trump's new policy towards the semiconductor industry and TSMC, our government will work closely with industry to maintain Taiwan's leading position in the field of advanced technology," the council said, without providing further details.

TSMC itself did not provide any comments regarding this report.

The United States is Taiwan's most important international backer and arms supplier, although it officially does not recognize the island's government.