Fear and resignation after ‘world’s most powerful company’ pays Trump a $100 billion ‘protection fee’

Hong Kong/Taipei CNN —

It was a surprise ceremony at the White House presided over by President Donald Trump to unveil a $100 billion investment from what he called the world’s most powerful company, Taiwan Semiconductor Manufacturing Company (TSMC).

But nearly8,000 miles away, the mood was far from celebratory. Instead, the shock announcement last week has reignited fears in Taiwan about losing its crown jewel, its world-beating semiconductor industry, to the US due to political pressure.

The island democracy’s former President Ma Ying-jeou wasted no time in accusing the ruling Democratic Progressive Party (DPP) of “selling TSMC” to Trump as a “protection fee.”

“This is a major national security crisis,” Ma, a member of the opposition Kuomintang (KMT), wrote on his Facebook page on March 4, shortly after the White House signing ceremony. It will “’have a significant negative impact on people’s confidence, cross-strait relations and Taiwan’s future geopolitical position.”

To reassure the public, Taiwan President Lai Ching-te appeared alongside TSMC CEO CC Wei last week at Taipei’s presidential office, saying the company’s US investment would not undermine its commitment to and planned expansion in its home base.

TSMC produces more than 90% of the world’s advanced microchips, which power everything from smartphones and artificial intelligence to weapons. That’s why many in Taiwan believe that global dependence on its semiconductors serves as a “silicon shield,” a deterrent against a potential Chinese invasion.

China’s ruling Communist Party claims Taiwan as part of its territory despite having never controlled it and has vowed to take control of the self-governing island, by force if necessary. Beijing has in recent