Veteran Chinese Economist Urges China To Seize TSMC - Read Why

A veteran Chinese economist called on authorities in an online post to capture Taiwan Semiconductor Manufacturing Co TSM lest the U.S. hit China with destructive sanctions akin to Russia.

Chen Wenling serves as the chief economist at the China Center for International Economic Exchanges, run by China's top economic planning agency, the National Development and Reform Commission, Bloomberg reports.

"Especially in the reconstruction of the industrial chain and supply chain, we must seize TSMC," Chen said in a speech hosted by a Chinese University and later posted online by the nationalistic news website. 

Also Read: US Warns China Against Helping Russia In Ukraine War

Chen expressed concerns over media stories reporting TSMC's speeding up transfer to the U.S. via the construction of six TSMC factories.

TSMC is a leading contract manufacturer of semiconductors, accounting for over 50% of the global foundry market, boasting of customers like Apple Inc AAPL.

Beijing claimed Taiwan as part of its territory disputing with the Taipei government, which argued Taiwan was a de facto independent nation needing wider international recognition.

Donald Trump's sanctions prevented chipmakers, including Huawei Technologies Co.'s HiSilicon and Semiconductor Manufacturing International Corp, from migrating toward more advanced wafer fabrication technologies.

President Joe Biden looks to invest $52-billion to drive the U.S. semiconductor chip production and research to tackle China's growing semiconductor dominance.

The U.S. slapped restrictions on multiple companies operating in Russia, including the Big Techs after it invaded Ukraine.

Price Action: TSM shares closed lower by 0.67% at $93.14 on Monday.

Photo via Wikimedia Commons