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Taiwan Quietly Urges US to Calm Rhetoric on China Chip Risk

 1 year ago
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Taiwan Quietly Urges US to Calm Rhetoric on China Chip Risk

Debby Wu and Jenny Leonard
Fri, April 21, 2023, 1:00 PM GMT+9·6 min read
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Taiwan Quietly Urges US to Calm Rhetoric on China Chip Risk

(Bloomberg) -- Spooked by the threat that China might invade Taiwan, the US wants to cut its dependence on the island’s world-beating microchips. Officials in Taipei believe the Biden administration is going too far.

Most Read from Bloomberg

In quiet conversations and back-channel warnings, Taiwanese officials have urged their American counterparts to tone down their rhetoric about the dangers of relying on chips made by Taiwan Semiconductor Manufacturing Co.

The officials are particularly unhappy with Commerce Secretary Gina Raimondo, who has called US dependence on Taiwanese chips “untenable” and “unsafe.” They were also uneasy with remarks by a top Republican lawmaker, Michael McCaul, during a recent trip to Taipei. He said Taiwan’s semiconductor industry is a strategic asset that’s “very vulnerable to invasion.”

“The window’s closing,” McCaul said about a US push to move the chips supply chain out of Taiwan. “We don’t have a whole lot of time.”

Taiwan’s concerns were described by people familiar with the government’s stance who asked not to be identified discussing private conversations.

The nervousness they described highlights the conundrum that Taiwanese officials face in maintaining the island’s role as home to 90% of the world’s advanced semiconductors, which power everything from smartphones to artificial intelligence chatbots, while also trying to attract the military and diplomatic support needed to deter an invasion.

China views Taiwan as its territory and a national security priority. Beijing has watched warily as President Tsai Ing-wen has said the self-governing island is essentially already an independent country, even if few nations recognize it as such, and as President Joe Biden repeatedly said the US would come to Taiwan’s defense if attacked.

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