There is a lot more going on in the trade war between the USA and China than just escalating tariff rates. The Chinese are obviously concerned that the US is going to essentially import all of Taiwan’s most valuable intellectual capital.
In response to media query on concerns on the Taiwan island over the US hollowing out its semiconductor industry are growing, Zhu Fenglian, a spokesperson for the Taiwan Affairs Office of the State Council, said that the concerns of Taiwan’s industry are not groundless. TSMC has long become a political pledge of the DPP authorities’ attempts to seek “Taiwan independence” by leaning on the US. It is only a matter of time before Taiwan’s semiconductor industry is handed over by Lai Ching-te, who is a “professional traitor of Taiwan.”
According to Reuters reports, TSMC and Intel recently discussed a preliminary agreement to form a joint venture to operate the US chipmaker’s factories. TSMC will take a 20 percent stake in the new company. Taiwan’s major chipmaker United Microelectronics and US-based GlobalFoundries are looking into the possibility of a merger.
As hard as it is to build, it falls as quickly as a spark sets hair on fire. If the DPP authorities are allowed to continue down the dangerous path of selling out Taiwan and ruining Taiwan, Taiwan’s industrial sector and the public will not only lose their current jobs, but also the opportunities for future development, said Zhu.
This is where trade war can lead to actual war. Remember, what President Trump is attempting to do is set up the USA in the best possible position for when the current international trade regime collapses entirely. Getting Taiwanese semiconductor companies to move to the USA would be a major coup, and it’s obviously one that the Chinese authorities will seek to prevent.