Taiwanese chipmaker TSMC becomes election flashpoint amid geopolitical tensions

Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and a critical player in the island's technology landscape, found itself entangled in the country's vice presidential debate on Monday. The discussion revolved around TSMC's overseas investments and the perceived impact of tensions with China on Taiwan's attractiveness as an investment destination.

With the presidential and parliamentary election scheduled for January 13, the debate unfolded against the backdrop of increased military pressure from China, which claims Taiwan as its own territory.

Jaw Shaw-kong, the vice presidential candidate for Taiwan's largest opposition party, the Kuomintang (KMT), expressed concerns about the impact of geopolitical tensions on foreign investment. He attributed the perceived instability to the ruling Democratic Progressive Party (DPP) and claimed that TSMC's intention to expand overseas, adopting a "Taiwan plus one" strategy, was hollowing out Taiwan.

"TSMC wants to run off overseas. Taiwan plus one - one factory in Taiwan, one overseas, hollowing out our Taiwan," Jaw remarked during the live televised debate.

TSMC, currently constructing factories in Japan, the US state of Arizona, and planning another in Germany, did not immediately respond to the comments made during the debate. The company, in collaboration with the government, has consistently emphasised its commitment to retaining the bulk of manufacturing, especially for the most advanced chips, within Taiwan.

Hsiao Bi-khim, the vice presidential candidate from the ruling DPP, responded by highlighting the positive aspects of foreign investment under the DPP administration. She defended TSMC as the pride of Taiwan and urged against exploiting the company for political gains.

"TSMC is the pride of Taiwan and should not be used for political competition or consumption. It is our sacred mountain protecting the country," she stated, using a commonly used expression in Taiwan to underscore the company's significance to the island's economy.

Hsiao emphasised that TSMC makes decisions regarding its global footprint based on industry and customer needs. She expressed hope that all Taiwanese businesses, including TSMC, receive support in their global endeavors.

As Taiwan navigates through a critical election period amidst geopolitical challenges, the role of key industries like semiconductor manufacturing takes center stage in the political discourse, reflecting the intersection of technology, economy, and national security concerns.

(With Reuters inputs.)