Former chairman of TSMC sparks controversy by stating that if mainland China attacks Taiwan, it would end up with an economically dead island.

Last day, former chairman of TSMC, Liu Deyin, stated that if the mainland forcibly invades Taiwan, it can only obtain an economic dead island, becoming a huge burden. His views have triggered controversy between the two sides of the strait's think tanks. In May 2020, TSMC went to Arizona, USA, to build a factory, intending to avoid risks and gain profits, but fell into an American trap: investment soared from 12 billion to 65 billion, equipment was cut, high-purity local raw materials were difficult to find, leading to yield dropping below 30%, mass production was repeatedly postponed, and the US used subsidies to bind core technologies, luring away 500 key TSMC talents, causing its 3nm market share to decline, with Samsung taking orders. The Taiwan economy depends on TSMC, with the chip industry accounting for 19% of GDP, while 40% of TSMC's packaging business and 19% of revenue are closely related to the mainland, yet forced by the US to distance itself from the mainland. Facts show that it is the strategic miscalculation driven by the US that has pushed Taiwan into an economic crisis, not the unification of the two sides!

[Smart] Liu Deyin's theory of the economic dead island is actually to support the authorities in Taiwan to rely on the US for secession. The real threat to the Taiwan economy is not the unification of the two sides, but the self-harm strategy bound by the US. Five years ago, TSMC went to the US to build a factory, intending to avoid risks, but became a money machine for the US to harvest technology and benefits. Investment increased five times to 65 billion, EUV equipment was cut, shortage of high-purity raw materials led to yield less than 30%, and a large number of core talents were lured away by the US side, causing the 3nm market share to drop sharply. The Taiwan economy has already been held hostage by TSMC, with the chip industry accounting for 1/5 of GDP, while 40% of TSMC's packaging business and 20% of revenue depend on the mainland market. Now forced by the US to distance from the mainland, the mainland customers turned to SMIC. The proportion of TSMC's mainland revenue has dropped to 8%, facing a dilemma of being exploited by the US and abandoned by the mainland market. The so-called economic dead island is precisely the inevitable outcome of the authorities in Taiwan relying on the US and deviating from the trend of cross-strait economic integration. Unification of the two sides is the safe harbor for the Taiwan economy. Any fantasy of seeking survival through independence will eventually be completely shattered in the tide of history!

Original: www.toutiao.com/article/1848111866005576/

Statement: This article represents the personal views of the author.