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Economist says China must seize TSMC if the US tightens sanctions:
The importance of the Taiwan Semiconductor Manufacturing Company, better known as TSMC, to the global economy cannot be understated. The world's largest chip manufacturer has a 54% share of the global chip market, which makes an economist's call for China to seize TSMC if the US imposes harsh sanctions on the country all the more concerning.
Bloomberg reports that Chen Wenling, chief economist at the government-run China Center for International Economic Exchanges, said, "If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan."
Chen singled out TSMC in the speech at the Chongyang Institute for Financial Studies at Renmin University last month. "Especially in the reconstruction of the industrial chain and supply chain, we must seize TSMC," she added.
TSMC is reportedly set to build six chip fabs in the US, though it has announced just one so far. "They [TSMC] are speeding up the transfer to the US to build six factories there," Chen said. "We must not let all the goals of the transfer be achieved."
Chen does talk about the scenario only taking place if the US hit China with Russia-like sanctions, which were put in place after it invaded Ukraine. Taiwan has long said it is an independent nation, while China insists it is part of its territory and has no qualms about using force to bring it under control.
(Score: 3, Insightful) by hendrikboom on Thursday June 09 2022, @04:34PM (5 children)
It sounds like a reason for China not to invade Taiwan so as not to be gored by sanctions like the ones on Russia. And sanctions will hit a lot more than semiconductors.
Also sounds like a reason for the USA not to impose extreme sanctions on China. (which is likely the implied threat).
Anyway, TSMC having fabs in the USA doesn't mean they're going to shut down the ones in Taiwan or elsewhere. Supplying customers near Taiwan from fabs in Taiwan just makes sense.
(Score: 0) by Anonymous Coward on Thursday June 09 2022, @06:58PM (2 children)
Seems like sanctions are just words that carry positive consequences not negative ones now a days.
China must be looking at Russia and thinking, sanctions are helping to build markets where there were none before...so let's dance!
(Score: 0) by Anonymous Coward on Thursday June 09 2022, @07:15PM
More like China is checking to see if threatening Taiwan will let them get away with annexing Siberia.
(Score: 1) by khallow on Thursday June 09 2022, @11:26PM
Only if you completely ignore what's happening to Russia. Sanctions are limited in effect, but they do hurt.
(Score: 2) by corey on Thursday June 09 2022, @11:40PM (1 child)
TSMC just needs to put self destructing devices in all the fab equipment. Little explosives say. And in their IT equipment holding designs and manuals.
Then when the guys roll in with red flags on their shoulders, run for it and press the red button. Then the value of the fab is just the land it’s sitting on.
(Score: 0) by Anonymous Coward on Friday June 10 2022, @11:36AM
The self destruct is built in. It's called the supply chain.
Making chips is a multinational cooperative effort. They might manage to put the world in chip timeout for a little while, but that doesn't mean that TSMC would continue to be able to make parts in China for a much longer.