Seth Moulton
Screnshot
US politicians have once again sparked debate by suggesting bombing Taiwan Semiconductor Manufacturing Company (TSMC) in the event of cross-strait conflict. During a recent Milken Institute forum discussion on China-US strategic competition, Democratic Congressman Seth Moulton stated, "China needs to know that if you invade Taiwan, we'll blow up TSMC". While participating in the same panel discussion, US House Foreign Affairs Committee Chairman Michael McCaul revealed that President Tsai Ing-wen had asked him about the status of her country's weaponry during his visit to Taiwan in April.

This is not the first time that US politicians have suggested bombing TSMC. In 2019, former Vice President Joe Biden had mentioned that the US would have to come up with new ways to counter China's cyber attacks and intellectual property theft, including striking at Chinese companies like TSMC. Republican Senator Tom Cotton also touched on the topic earlier in May this year when he stated that America's military response should include targeting Chinese critical infrastructure such as TSMC and Huawei.


Comment:


The hidden text above reads: 'Flournoy: Don't bomb Taiwan. This will cause $2 trillion in damage to the global economy.'


Moulton later clarified his stance, saying that it is not the best strategy but only an example.


Comment: Imagine the hysterical responses from US politicians if China spoke of such provocations in such a carefree manner.


Nevertheless, his comment could bring Taiwan's technology industry, particularly TSMC, into focus in the escalating tensions between the US and China over the issue of Taiwan. TSMC, a crucial supplier to US firms such as Apple and Qualcomm, has seen its stock fall repeatedly this week following his comment.

Experts have pointed out that bombing TSMC would not only anger China but also cause significant harm to Taiwan's economy.


Comment: Such lack of foresight is the hallmark of belligerent American foreign policy; it's little wonder that (sovereign) nations across the globe are pivoting East. And Taiwan's population can't too enamoured with saviours such as these.


TSMC accounts for nearly half of the world's chip production and is a critical part of Taiwan's technology industry. The threats against it have highlighted how Taiwan, which relies heavily on the US for support, can be caught in the middle of tensions between the superpowers.