Published in PC Hardware

China will invade Taiwan to control TSMC

by on08 June 2022

If the West imposses sanctions

Chief economist for the China Center for International Economic Exchanges Chen Wenling has suggested that if the West brings in sanctions against China the country will invade Taiwan to obtain control of TSMC.

Chen opened by saying that China and the US need to ease the hostile relations between them, and that a confrontation between the two powers would be "a disaster for mankind."

However, she then claimed the US was seeking to isolate China, citing the Trans-Pacific Partnership (TPP) and Trans-Atlantic Trade and Investment Partnership (TTIP) agreements as attempts by the US to create two large "anti-China" trade bodies, although the US pulled out of the former and the latter was cancelled because of disagreements.

Echoing many concerns in the West, Chen said that China needs to take steps to secure its industrial chain and supply chain, and make strategic preparations to "deal with the United States' insistence on breaking the chain and containing it," according to a translation of the text.

This means that if the US and allies imposed sanctions on China like those deployed against Russia, China "must recover Taiwan" and "seize TSMC, a company that originally belonged to China."

Chen claimed that "they are speeding up the transfer to the United States, and to build six factories in the United States. We must not let all the goals of the transfer be achieved," a possible reference to the US CHIPS Act, which seeks to encourage the building of semiconductor fabrication plants on US soil, which may include funding going to TSMC for chipmaking facilities it is building in Arizona.

While alarming, Chen's speech appears to suggest that China should only take this action as retaliation to threats against its economic security, and there is no reason to believe that sanctions comparable to those on Russia are likely unless China becomes involved in a similar act of hostility against another country – ironically Taiwan.

What makes her observation interesting is that China seems to see TSMC as a way to obtain technology quickly.


Last modified on 08 June 2022
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