U.S. House of Representatives Speaker Nancy Pelosi (left) and Taiwanese President Tsai Ing-wen hold hands in the Oval Office in Taipei on the 3rd. Pelosi is the highest-ranking American to visit Taiwan in 25 years since House Speaker Newt Gingrich in 1997. Chairman Pelosi departed for Korea in the followingnoon. AFP Yonhap News “/>
U.S. House of Representatives Speaker Nancy Pelosi, who made a surprise visit to Taiwan despite opposition from China, is reported to have discussed plans to expand investment in the U.S. with Liu De-yin, chairman of Taiwan’s TSMC, the world’s largest foundry (semiconductor consignment production) on the 3rd. This shows that the economic and industrial problems represented by semiconductors are the biggest issues in the United States.
According to the Taiwan Free Times, Chairman Pelosi had a video conference with Chairman Liu at the American Association of Taiwan (AIT), which serves as the US embassy in Taiwan on the same day. The two sides did not disclose the details of the talks in consideration of the sensitivity of the matter. The luncheon hosted by President Tsai Ing-wen was attended by industry representatives including TSMC founder Zhang Zhongmou.
“Chairman Pelosi expressed his appreciation for TSMC’s investment in the United States, and Chairman Liu conveyed his wishes for further investment,” said Ku Jianming, a member of the ruling Democratic Progressive Party in Taiwan. Kerr observed that Pelosi might amend the semiconductor industry promotion bill in the direction of expanding support for the industry. This law was recently passed by the US Congress.
TSMC is considered a key company that supplies semiconductors in large quantities to the US and the West. The US has asked TSMC to build a US factory in case of emergencies such as China’s invasion of Taiwan. TSMC will invest $12 billion (regarding KRW 15.7 trillion) in May 2020 to build a state-of-the-art factory in Phoenix, Arizona. The plant is expected to be completed by the end of next year. Facility expansion at TSMC’s Arizona plant is also expected to accelerate.
In contrast, China’s CATL, the world’s largest EV battery maker, has put its North American investment plan on hold. According to Bloomberg News, CATL was regarding to announce the establishment of a factory to supply batteries to US Tesla and Ford. However, as the US-China conflict intensified, it was postponed until September.
There are concerns that global logistics will be disrupted as China launches an all-round ‘armed protest’ that surrounds Taiwan from all sides. According to Bloomberg News, some natural gas carriers heading to Northeast Asia are changing their routes or reducing their operating speeds. Freight to Taiwan and Japan is expected to be affected this weekend.
China to conduct military exercises for ‘Siege of Taiwan’ in six waters starting today
Ban on trade and cooperation with Taiwanese companies… Restrictions on export and import were also implemented.
Chairman Pelosi said at a press conference following meeting with Taiwanese President Tsai Ing-wen on the 3rd that he respected the ‘one China’ policy, but said, “solidarity with Taiwan is more important than ever.” “We want Taiwan to be safe and free forever,” he said. “Taiwan will not back down in the face of military threats,” Tsai said.
China is focusing its economic and military counterattack on Taiwan. The Taiwan Office of the State Council, the Taiwanese agency of the Chinese government, defined Taiwan’s ‘Taiwan People’s Fund’ and ‘International Cooperation and Development Foundation’ as ‘Taiwan Independent Molecular-Related Organizations’ and cooperated between these foundations and Chinese organizations, companies, and individuals. announced a ban.
The Taiwan Office of Public Affairs also banned trade and cooperation with Taiwanese companies that donated to two funds: Shande Energy, Lingwang Technology, Tianliang Medical and Tianyan Satellite Technology. In addition, the head of the Taiwanese company said it would be barred from entering China.
China’s Ministry of Commerce announced on the same day that it will temporarily suspend exports of natural sand to Taiwan. China’s customs agency, the Customs Service, has temporarily suspended imports of Taiwanese citrus fruits, chilled cutlassfish and frozen horse mackerel from today. On the 1st, the day before Pelosi’s visit to Taiwan, the Customs Administration banned the import of food from more than 100 Taiwanese companies.
From the night of the 2nd, the Eastern Front of the People’s Liberation Army of the People’s Liberation Army began joint air and naval exercises in the waters and air of northern, southwestern and southeastern Taiwan, long-range firepower live ammunition firing in the Taiwan Strait, and general firepower demonstrations in the eastern Taiwanese waters. The People’s Liberation Army plans to conduct military exercises in the air and in six sea areas surrounding Taiwan from the 4th to the 7th.
Beijing = Correspondent Hyeonu Kang hkang@hankyung.com
