Taiwan's Government Needs Guts
China Times Editorial, October 1, 2021
Secretary of Commerce Gina Raimondo of the United States issued a notice to international semiconductor companies, including the Taiwan Semiconductor Manufacturing Company (TSMC), at the semiconductor summit on September 23, demanding that the supply chains to voluntarily share information about their inventories and related data before November 8. Otherwise, the United States may invoke the National Defense Act, which traces to the Cold War era, to determine whether the companies are hoarding semiconductor chips. Frankly speaking, if any American factory is intimidated, it is a matter of the United States, and we have no right to poke nose into it. But the matter involves TSMC, often dubbed the “sacred mountain which protects the country” in Taiwan; then it is too unaccountable and unreasonable for the government to pretend to be dumb and deaf on this issue.
The chief reason for the widespread shortage of semiconductor chips is because the auto sector’s demand rebounded after the pandemic situation ameliorated, but the production was hampered by lack of chips. In February this year, Federal Minister for Economic Affairs Peter Altmaier of Germany also sent a letter to TSMC for assistance. However, when car dealers reduced their orders last year, Taiwan chip manufacturers had warned that it would be difficult to recover once the orders were reduced. The words were prophetic—the shortage of chips has spread from Europe to the United States.
Facing the arrogant demand of the United States, the responses of the Tsai Ing-wen government were really embarrassing. Minister of Economic Affairs Wang Mei-hua responded at first by saying that “the companies will consider disclosure or not by themselves.” After being criticized for not taking the responsibility, she changed her statement the next day, saying “it is certain to be voluntary, and the U.S. government will not leak or divulge the information provided by the companies.” Did Minister Wang ask the question to the right American official? Don’t forget that it was Minister Raimondo who just said that she wants to improve economic and trade relations with the mainland. She emphasized that she does not want to go to the mandatory step, but if it does comply, it leaves her with no other choice.
Looking at it from another angle, if Beijing tenders an ultimatum to TSMC and UMC comparable to the one that the United States demands, will officials say the same? Does the ruling Democratic Progressive Party (DPP) still indulge in idle talks? The major shareholders of TSMC and Minister Kung Ming-hsin of the National Development Council, did not even dare to face the issue squarely, to say something like the U.S. demand is unreasonable. Of what are the officials afraid?
TSMC is publicly listed in the United States. It naturally needs to comply with local market regulations, and it is inappropriate to disclose the list of its customers and trade secrets anyway. We do not criticize whether the U.S. practices are prudent or not, but if it really demands peremptorily, it would be a farce to democracy.
The DPP often boasts that U.S.-Taiwan relations are now at the best in history. However, if this is based on unequal, subservient relations, then there is nothing to be proud of. Though Taiwan needs the United States, our government still needs to pluck up its guts and say no when there arises the need.
From: https://www.chinatimes.com/opinion/20211001003364-262101