Beijing Criticizes DPP Over Reported $100 Billion US TSMC Expansion

On July 22, 2026, Beijing’s Taiwan Affairs Office (TAO) strongly criticized Taiwan's Democratic Progressive Party (DPP) administration following media reports that Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest an additional $100 billion in Arizona. TAO spokesperson Zhang Han accused the DPP of selling out Taiwan's industrial interests for political gain, arguing that transferring semiconductor manufacturing capabilities to the United States erodes the island's economic advantages and risks hollowing out its crucial technology sector.

Reports of expanded TSMC investments in the United States have renewed anxiety in Taiwan over the potential hollowing out of its semiconductor supply chain. Beijing's sharp response highlights how advanced technology flows and chip manufacturing capacity have become central flashpoints in cross-strait relations and broader geopolitical competition between Washington and Beijing.

Beijing’s Taiwan Affairs Office (TAO) issued a sharp rebuke against Taiwan’s ruling Democratic Progressive Party (DPP) on July 22, 2026, following media reports that Taiwan Semiconductor Manufacturing Co. (TSMC) plans to invest an additional $100 billion in the United States. Speaking at a regular press conference in Beijing, TAO spokesperson Zhang Han targeted the DPP leadership after a reporter raised inquiries regarding TSMC's reported plans to construct four additional semiconductor fabrication plants (fabs) alongside advanced packaging facilities in Arizona. The reported expansion has reignited public debate and political anxiety within Taiwan over whether the island's flagship technology firm is effectively transforming into an American entity, risking the gradual hollowing out of Taiwan's core semiconductor ecosystem. In response, Zhang characterized the DPP administration's foreign policy as relying on the United States to seek independence and subserviently selling out Taiwan. According to Zhang, the ruling authorities are the primary cause of damage to Taiwan's economy and the erosion of its competitive industrial advantages. He asserted that the administration is sacrificing long-term industrial interests for political self-interest, thereby undermining both the future of the technology sector and the livelihoods of local residents. The controversy highlights deep-seated sensitivities surrounding TSMC's international expansion strategy. While TSMC has expanded its footprint globally under pressure from international customers and foreign governments seeking supply chain resilience, domestic observers in Taiwan remain concerned that offloading advanced manufacturing processes and technical expertise could diminish the island's economic shield. The reported $100 billion investment in Arizona, if confirmed by corporate disclosures, would mark a major shift in TSMC's global manufacturing footprint. Beijing's critique reflects its broader geopolitical stance, which frames Western efforts to diversify chip production away from Taiwan as an attempt to separate the island's economy from the mainland while extracting its key technology assets.