Chen Binhua, a spokesperson for the State Council's Taiwan Affairs Office Photo:VCG

Chen Binhua, a spokesperson for the Taiwan Affairs Office of the State Council, said on Wednesday that with the Democratic Progressive Party (DPP) authorities totally siding with and catering to the US without limits, concerns [over United Microelectronics Corporation (UMC)'s being pressured to set up plants in the US] are by no means exaggerated or unfounded. 

The remarks came in response to media inquiries during a regular press briefing about reports that there are increasing worries among the semiconductor industry in the island of Taiwan that UMC might follow in the footsteps of Taiwan Semiconductor Manufacturing Company (TSMC) by being compelled to establish factories in the US, a move that could undermine Taiwan's competitive edge in the global chip market.

According to reports by multiple Taiwan media outlets, including TVBS, Raymond F. Greene, director of the American Institute in Taiwan (AIT), visited the headquarters of UMC located in Hsinchu in November and held talks with senior executives of Taiwan's second-largest chip foundry. This meeting has intensified widespread concerns across the island that UMC will face similar pressure to relocate its operations.

In recent years, the US has been intensifying its efforts to compel the DDP authorities to relocate the island's vital chip manufacturing capabilities from the island to the US. Earlier reports indicated that the US has requested TSMC to relocate its advanced processes to the US.

If the DPP authorities continue to sell outside Taiwan without any bottom line, the competitive edge of Taiwan's related industries will undoubtedly be diminished, resulting in damaged interests for the island's enterprises and residents, warned Zhu Fenglian, another spokesperson for the Taiwan Affairs Office on December 11.


Global Times