China accused Taiwan of attempting to surrender its prized semiconductor industry to the United States as a “souvenir” to gain political support, amid reports that Taiwan Semiconductor Mfg. Co. Ltd. has been in talks for a stake in Intel Corp ( INTC ) .

Speaking at a Wednesday news conference, China’s Taiwan Affairs Office spokesperson Zhu Fenglian claimed Taiwanese citizens worry TSMC could transform into “United States Semiconductor Manufacturing Co,” suggesting Taiwan’s ruling Democratic Progressive Party is “selling out” domestic companies for foreign political backing, Reuters reported.

The accusations come as media report discussions between global chip manufacturing leader TSMC and Intel ( INTC ), though neither company has confirmed negotiations. Taiwan’s government stated it hasn’t received any overseas investment applications from TSMC regarding Intel ( INTC ).

TSMC and the Ministry of Foreign Affairs, Republic of China (Taiwan)  did not immediately respond to Benzinga's request for comment.

President Donald Trump has previously criticized Taiwan for capturing American semiconductor business, pushing for increased U.S.-based manufacturing. Apple Inc ( AAPL ) recently announced plans for a Texas AI server factory by 2026, adding approximately 20,000 R&D positions.

Taiwan’s government, which China claims sovereignty over despite Taipei’s objections, relies heavily on U.S. military support and arms sales without formal diplomatic recognition.

Read Next:

Market Could Enter A ‘Real Correction,’ Expert Warns, Highlights 2 ‘Recession-Resistant’ Companies

Image Via Shuttertstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.