Presidency of Taiwan / Wkimedia Commons
Lai Ching-Te, Taiwanese President
TSMC, the world’s largest manufacturer of super processors, will invest in the US. The decision can already be part of a military alignment.
The US President, Donald Trumpcalls Taiwan Semiconductor Manufacturing Company (TSMC) the most powerful company in the world.
Taiwanesa is responsible for production of over 90% of the most advanced microchips From the world, essential to mobile phone production, cryptocurrency mining, artificial intelligence and even weapons.
Currently, TSMC ranks 8th with the most market value in the world. It is one of the most important companies in the world, which has worried the US, which have been trying to establish a manufacturing basis in the United States.
This is because if China invades the country, the chip monopoly passes into its hands. The chips are, by the way, one of the main reasons that have attached China’s attention in Taiwan.
This is why the US and China are interested in the country: all because of TSMC, whose capital is American.
This week, at the White House, Donald Trump announced the $ 100 billion investment (almost 100 billion euros) of the Taiwanese company in the United States.
As a result, the former president and member of the opposition of Taiwan Ma Ying-Jeou, accused the Progressive Democratic Party (DPP) “Sell TSMC” Trump as a “protection rate”.
In practice, this amount seems to act, in fact, as a “Protection Rate”as it points to. But what is it for?
Taiwan has faced a threat of invasion from China for several years. In recent years, Beijing has been intensifying military activities next to the Asian country, which claims like yours.
The Taiwan Relations Law forces the US to defend the country in the event of Chinese invasion, but with the development of the situation in Ukraine, the country may be preparing for the worst, as Trump begins.
This change in international politics can make the tawainese hesitant about whether or not to rely on US support in potential armed conflict with China. The “protection rate” that opposition speaks can be a strategic gamethat “buys” US security in the Taiwan Strait.
Last week, the country’s president, Lai Ching-Te, said Taiwan did not “face any pressure from Washington” by closing the deal with TSMC, which, according to the company, was the largest investment in the US ever made by a non-American company.
Chang-Tai Hsieh, economist at the Booth School of Business at the University of Chicago, ensures that although it is obvious that companies like TSMC and others will have to “do everything they can to make Trump happy”, these concessions also scratch: “When you agree with the blackmail, it has no end.”
