Taiwan is planted: there will be no TSMC factory in the EU if they do not open trade negotiations

taiwan has been planted with the European Union: if they do not unlock trade negotiations between the region and Taiwan, Taiwanese chip development companies will not open plants to manufacture them on EU territory. This is stated by Bloomberg, where they echo an editorial column published by the Taiwan Central News Agency, backed by the country’s government.

This reaction from Taipei comes weeks after TSMC began negotiations to build a chip manufacturing plant in Germany, in which it will have to invest several billion dollars. As pointed out from Taiwan, while TSMC is negotiating with Germany, the European Commission has rejected the opening of negotiations on trade and investment with the area. Although the parliament of the region has proposed to open them.

Hence the anger of the authorities, and as they point out in the aforementioned opinion column, “the European Union wants Taiwan to build plants, but for Taiwan there is no need to do so from a business point of view. If the European Union only wants Taiwan chips but wants to stay out of further diplomatic talks, will Taiwan, with its global strategic assets, be innocent enough to do so?«.

The agency has also criticized recent comments by an EU official, who assured that it was not necessary for the European Union to reach an investment agreement with Taiwan. This opinion column is an unusual move by the government of Chairman Tsai Ing-wenwhich normally adopts a friendly tone when speaking and addressing other countries, even though there are no diplomatic relations between Taiwan and the world’s major countries due to opposition from China, which claims that Taiwan is part of its territory.

Tensions between the governments of China and Taiwan have escalated since the United States increased pressure on China, with the aim of curbing its role in the Asian region. At the same time, Taiwan’s role as the leading manufacturer of advanced chips is boosting its strategic position.

But the region is seeking, more and more insistently, to deepen commercial relations, as well as other more informal ones, both with the United States and with other Western countries. that’s why you are shielding in the TSMC negotiations in Germany to try to force the EU establish trade relations with Taipei. Regarding the status of the talks between TSMC and the German government for the construction of the chip plant they want in the country, TSMC is still evaluating the plans for the construction of a chip manufacturing plant in the European Union, without has not yet taken any final decision on the matter.

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