What will happen to TSMC factories if China decides to take over Taiwan

(ORDO NEWS) — The tension around Taiwan, which China considers its own territory, does not subside. The director general of the country’s National Security Bureau gave some reassurance to those who feared that TSMC’s factories would have to be blown up in the event of an invasion.

China dreams of TSMC, because it does not own technology even close to Taiwan’s. Taiwan Semiconductor Manufacturing Company’s local factories today provide more than half of the world’s demand for chips – processors, memory boards and other semiconductors.

Beijing, on the other hand, receiving new sanctions every day, remains without technologies that are important today and is gradually falling out of technological leadership.

In the event of a successful military campaign against Taiwan, China will gain access to Taiwan’s rich assets, including its microchip manufacturing base.

Therefore, some former US officials have advocated telling China that TSMC facilities will be destroyed if the island is occupied.

What will happen to TSMC

Chen Ming-tong, director general of Taiwan’s National Security Bureau, said there was no need to destroy the semiconductor industry in a possible armed clash with China, the source said.

According to him, China will not gain anything from the takeover of factories, because TSMC is deeply integrated into the international supply chain, so production will still be stopped.

If you understand the TSMC ecosystem, such comments are unrealistic. TSMC needs to integrate global elements before producing high quality chips.

Without key components or equipment, TSMC would not be able to continue production. Even if China gets the golden hen, it won’t be able to lay golden eggs,
says Chen Ming-tong.

Thus, even with manufacturing facilities and equipment, China will not be able to produce chips the way Taiwan did, because now there will be no materials needed for this.

In addition, equipment also does not last forever: sooner or later it will have to be replaced, but there will be nothing due to sanctions.

It is worth noting that recently TSMC has been actively cooperating with the United States to transfer its production to the United States and protect trade secrets.

For example, even under the presidency of Donald Trump, they announced the construction of a large plant in Arizona. It will provide 1,600 jobs and production should start as early as 2024.

There, probably, they will create chips using 4-nanometer technology and more modern ones. So far, the bulk of TSMC’s production takes place in Hsinchu, a city in the northwestern part of the island of Taiwan.

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