China accused Taiwan on Wednesday of attempting to hand over its semiconductor industry to the United States, claiming that the island's government was using the industry to gain political support from Washington. The accusation comes amid reports that Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, may be negotiating a stake in Intel. However, neither TSMC nor Intel has confirmed the talks and Taiwan's government says it has not received such investment proposals from TSMC.

China's Taiwan Affairs Office spokesperson, Zhu Fenglian, suggested without providing evidence that Taiwan's ruling Democratic Progressive Party (DPP) was using TSMC to seek foreign support for independence, accusing the island of 'selling out' its companies to the US. Taiwan, however, rejected these claims, with Taiwan's Mainland Affairs Council affirming the importance of TSMC to the island's economy and stressing its commitment to maintaining a leading role in semiconductor technology.

The US has been critical of Taiwan's semiconductor industry, with former President Donald Trump calling for more manufacturing to return to the United States. Despite China's claims, Taiwan maintains that it is responsible for its foreign investment decisions. The island continues to rely on the US for military support, though the US does not formally recognise Taiwan's government.

TSMC, which supplies major companies like Apple and Nvidia, did not comment on the reports. Taiwan's government, however, vowed to support the company amid rising tensions surrounding its semiconductor industry.