China Accuses Taiwan of Using Semiconductor Industry to Gain U.S. Support

China has accused Taiwan of attempting to hand over its semiconductor industry to the United States in exchange for political backing. Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, claimed Taiwan’s ruling Democratic Progressive Party (DPP) is leveraging Taiwan Semiconductor Manufacturing Co. (TSMC) to strengthen ties with Washington.

Recent reports suggest that TSMC, the world’s leading contract chipmaker supplying tech giants like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), is in talks for a stake in Intel (NASDAQ:INTC). However, neither TSMC nor Intel has confirmed these claims, and Taiwan’s government has stated it has not received any related investment applications.

U.S. President Donald Trump has previously criticized Taiwan for moving semiconductor business away from America, advocating for more domestic production. Meanwhile, China insists Taiwan is “selling out” its industry for political gains. Zhu claimed Taiwan is turning TSMC into a "United States Semiconductor Manufacturing Co." and accused the government of "shamelessly pandering" to the U.S.

Despite Beijing’s accusations, China has no authority over Taiwan’s investment decisions. The U.S. remains Taiwan’s key ally, providing military support while maintaining unofficial diplomatic ties. Neither Taiwan’s Mainland Affairs Council nor TSMC has responded to these allegations.

As geopolitical tensions rise, Taiwan’s semiconductor dominance remains a focal point in the global tech and political landscape.