Taiwanese officials have urged the officials of the US to tone down their rhetoric statements about the risk and danger of relying on chips made by Taiwan Semiconductor Manufacturing Co. They believe that the administration is going too far with these statements.
Urging US to Tone Down Rhetoric Statements
The United States released many statements regarding the danger and risk of depending on and relying on chips made by Taiwan Semiconductor Manufacturing Co., as they are frightened by the threat that China might invade Taiwan.
Because of this, Bloomberg reported that Taiwanese officials have called out the Biden Administration for these statements, particularly with Commerce Secretary Gina Raimondo who called US dependence on Taiwanese chips "untenable" and "unsafe."
Aside from her, Republican lawmaker Michael McCaul was also called out for his remarks, calling Taiwan's semiconductor industry a strategic asset that will make the United States very vulnerable to the invasion. McCaul stated that it is time to move the chip supply chain out of Taiwan as "The window's closing. We don't have a whole lot of time."
The Effect of Remarks
These warnings stated by US officials about the risk of attack have taken on new urgency in Taiwan amidst signs that some investors are listening. This includes billionaire Warren Buffet whose Berkshire Hathaway Inc. cut its holdings in TSMC by 86% during the 4th quarter over concerns between China and Taiwan.
As per Buffet in an interview with CNBC, "I re-evaluated that part of it. I didn't re-evaluate the business, the management, or anything of the sort." Despite selling shares from both TSMC and BYD Company, he described both as extraordinary and fabulous enterprises.
US Officials' Response
Following the pressed concerns of Taiwanese officials, a Commerce Department official who asked to be identified stated that the United States will still continue to work with allies like Taiwan in order to diversify and strengthen its supply chains in the country. This will include an increased investment and trade with Taipei.
As per the reports, the support for the island is now firmly bipartisan in Washington, with both Republicans and Democrats accusing Beijing of a plan to have its military ready to invade Taiwan by 2027.
Council on Foreign Relations stated that China views Taiwan as its territory and national security priority, as it is officially known as the Republic of China. Several nations described Taiwan as an independent country, including US President Joe Biden who repeatedly said that the US would come to Taiwan's defense if attacked.
