TSMC gets pulled into Taiwan election fray at vice-presidential debate
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Kuomintang's vice-presidential candidate Jaw Shaw-kong brought up how TSMC had plans to shift manufacturing overseas.
PHOTO: REUTERS
TAIPEI - Taiwanese chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) was dragged into the election campaigning fray on Jan 1 as vice-presidential candidates argued over the company’s overseas investments and whether tensions with China made Taiwan too dangerous a place to invest.
The Jan 13 presidential and parliamentary elections are happening as China, which claims Taiwan as its own territory, has stepped up military pressure to assert those claims, including staging war games near the island.
TSMC, the world’s largest contract chipmaker and the island’s most important company, is occasionally mentioned on the campaign trail, though issues that affect the sector such as the stability of the power grid and water shortages are much more frequently discussed.
Speaking at a live televised debate, Mr Jaw Shaw-kong, the vice-presidential candidate for Taiwan’s largest opposition party, the Kuomintang (KMT), said Wall Street financiers had met him before he knew he was entering the presidential race and asked if there was going to be war.
“If Taiwan does not have a peaceful environment, nobody will dare invest,” he said, blaming the ruling Democratic Progressive Party (DPP) for tensions with China. “Our TSMC wants to run off overseas. Taiwan plus one – one factory in Taiwan, one overseas, hollowing out our Taiwan.”
TSMC is building factories in Japan and the state of Arizona in the United States, as well as planning another in Germany.
It did not immediately respond to a request for comment.
The company and the government have repeatedly said the bulk of manufacturing, including the most advanced chips, will be kept in Taiwan.
DPP vice-presidential candidate Hsiao Bi-khim, formerly Taiwan’s high-profile de facto ambassador to the US, told Mr Jaw that foreign investment has reached record highs under the DPP administration.
“TSMC is the pride of Taiwan and should not be used for political competition or consumption. It is our sacred mountain protecting (us),” she said, using a commonly used expression in Taiwan describing how important the company is for the island’s economy.
TSMC makes decisions on its global footprint based on industry and customer needs, Ms Hsiao added.
“We hope all Taiwanese businesses will have everyone’s blessing in the process of the global layout.” REUTERS
