Taiwan Blasts EU for Wanting Chips While Denying Trade Talks

Debby Wu
·2 min read
27

(Bloomberg) -- The European Union may not get a chip plant from Taiwanese companies if it continues to refuse to engage Taipei in trade talks, the government-backed Central News Agency said in an editorial column on Monday.

Most Read from Bloomberg

Taiwan Semiconductor Manufacturing Co. has been talking with Berlin about setting up a multi-billion-dollar plant in Germany, as the EU joins regions in seeking investments to safeguard its supply chain. Without help from the likes of TSMC and Intel Corp., it could be challenging for the EU to secure advanced chipmaking capabilities.

But in an unusually combative piece, the official Central News Agency said the European Commission has refused to enter trade and investment talks — even though the region’s parliament has advocated such negotiations.

“The EU wants Taiwan to set up chip plants, but for Taiwan there is no need to do so from a corporate perspective,” the news service wrote. “If the EU only wants chips from Taiwan but shies away from talking diplomacy, will Taiwan, with its global strategic assets, be this naive?”

Read more: US Assesses China Doesn’t Want War in Taiwan, Spy Chief Says

Tensions between Beijing and Taipei have escalated as the US launches a broader push to counter China’s more assertive role in the region. The emphasis on funneling more money to US military assets in the Indo-Pacific highlights just how much the Biden administration wants to reorient its defense posture to respond to China’s own growing military and economic might.

At the same time, Taiwan’s role as the biggest maker of advanced chips is boosting its strategic position.

The agency on Monday specifically criticized recent comments by an EU official that it was unnecessary for the 27-member bloc to strike an investment agreement with Taiwan. The column was a rare move from the government of President Tsai Ing-wen, which usually adopts a friendly tone toward other democracies despite a lack of diplomatic ties between Taiwan and major countries due to Beijing’s opposition. China claims Taiwan as part of its territory.

Taiwan has instead been aggressively seeking to deepen trade and other informal relations with the US and other Western governments. TSMC is still assessing the plans for a chip plant in the EU, although no final decision has been made, TSMC spokeswoman Nina Kao said.

Most Read from Bloomberg Businessweek

©2023 Bloomberg L.P.