Chinese newspaper claims US ‘tricked’ TSMC into building factories in Arizona, stealing technology from ‘our Taiwan’

A hot potato: Taiwan Semiconductor Manufacturing Company, better known as TSMC, is investing billions in its US facilities. That’s good news for the economy, but it certainly doesn’t sit well with China. One of the Asian nation’s newspapers went so far as to accuse the US government of encouraging TSMC to build factories in the US and that the country is stealing technology developed in “our region of Taiwan”.

The South China Morning Post reports that an editorial in the Chinese nationalist tabloid Global Times called TSMC’s investment in its Arizona factory a “dark turning point” in the global semiconductor industry.

TSMC’s facilities in Arizona will include an upgraded 4nm fab and a 3nm fab to produce the most advanced chips. The Global Times claims that TSMC’s decision to invest in this cutting-edge technology in the US shows that the country’s government deceived the company and that Washington stole the latest technology from “our region of Taiwan”, a reference to China’s claim of sovereignty over the island. .

The Global Times is affiliated with the People’s Daily – the official newspaper of the Central Committee of the Communist Party of China – so Beijing will no doubt have approved the article. The Chinese government has not officially commented on TSMC’s facilities in Arizona, in violation of the CHIPS Act, which it has repeatedly called discriminatory.

“We need to ring the alarm bells louder […] The US can pressure chipmakers in other countries, as it did at TSMC,” the manager said. He compared the United States to a bull in a Chinese shop that ripped apart the semiconductor market. Party to “empty” Taiwan.

China has voiced its objections to the Biden administration’s restrictions on its chip industry, which have affected Nvidia and AMD, capping exports of chip-making tools and even driven Chinese Americans to leave the industry or be forced to give up their US citizenship. if they want to stay.

TSMC recently confirmed that it has more than tripled its investment in factories in Arizona from $12 billion to $40 billion. The site will create tens of thousands of jobs and will have a total production of 600,000 wafers per year. Unlike the rest of the tech industry, the world’s largest contract chipmaker isn’t going through a tough time right now; it recorded a 50.2% year-on-year increase in revenue in November, with sales reaching 7.27 billion.

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