Top Economist Urges China to Seize TSMC If U.S. Ramps Up Sanctions

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  • Policy proposal made in speech on US-China relations
  • Research group overseen by China’s economic planning agency

A senior Chinese economist at a government-run research group called on authorities to seize Taiwan Semiconductor Manufacturing Co. if the US hits China with sanctions on par with those leveled against Russia.

“If the US and the West impose destructive sanctions on China like sanctions against Russia, we must recover Taiwan,” said Chen Wenling, chief economist at the China Center for International Economic Exchanges. The research group is overseen by the National Development and Reform Commission, China’s top economic planning agency.

“Especially in the reconstruction of the industrial chain and supply chain, we must seize TSMC,” Chen said in a speech last month hosted by the Chongyang Institute for Financial Studies at Renmin University, which was posted online Tuesday by the nationalistic news website Guancha. 

“They are speeding up the transfer to the US to build six factories there,” she added. “We must not let all the goals of the transfer be achieved.”

The comments are some of the most prominent so far showing how Taiwan’s chip industry is seen in Beijing as a key strategic asset in the intensifying rivalry between the world’s two largest economies. TSMC is the world’s largest contract manufacturer of semiconductors, accounting for more than 50% of the global foundry market, which involves businesses purely making chips for other companies. Its customers include Apple Inc., which relies on Taiwanese chips for iPhones. 

A TSMC representative declined to comment on Chen’s remarks. Media reports have said TSMC will build six chip fabs in the US, but the company has announced just one so far. It has bought more land for possible construction. 

By Bloomberg News

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