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Semiconductor heavyweight TSMC saw a slipup in share price as political tensions mount over intended Pelosi visit to Taiwan.
The shares of TSMC dipped 2.98% on Tuesday ahead of a planned trip by US House of Representatives Speaker Nancy Pelosi to Taiwan.
TSMC warned that any political or military strife caused by the prospective Pelosi visit to Taiwan would severely impact its operations and shares. The Taiwan-based chip manufacturing giant is a leading global supplier of advanced semiconductors used in end-products like smartphones, cars, and missiles. In fact, TSMC controls more than half of the global semiconductor market, with a client list that includes Apple and Sony.
TSMC Shares Dependent on the Continued Success of Semiconductor Company
Emphasizing the importance of TSMC’s sustenance to global anthropological activities, TSMC chairman Mark Liu said:
“From materials to chemicals and spare parts, to engineering software diagnosis, and it’s everyone’s effort to make this factory operable.”
Will Pelosi Eventually Visit Taiwan?
Pelosi’s scheduled visit to Taiwan later in the day does not sit well with the Chinese government. In fact, the White House has warned that Beijing may respond to her visit with military provocations. According to National Security Council spokesman John Kirby, Beijing could launch missiles near Taiwan. Furthermore, Kirby also suggested that the government of China could additionally resort to substantial naval and air response activities. The Taiwanese defense system said it was closely monitoring the situation concerning these alleged threats. Furthermore, the island nation also stated that it is determined to defend itself against Chinese aggression near the island.
China says it is in communication with the US, even as Pelosi is currently touring Asia. The US House Speaker touched down in Malaysia on Tuesday, having been in Singapore the previous day. However, her reported itinerary to next visit Taipei in self-ruled Taiwan risks incurring the wrath of Beijing.
As of press time, Taiwanese and US media sources still claim there has been no official confirmation of Pelosi’s visit. Regardless, Beijing remains resolute in taking decisive action against the American politician’s prospective entry and forewarns of “serious consequences.”
The Chinese government sees Taiwan as a breakaway province, but still part of its own geographical territory. In fact, China reckons that it will someday seize Taiwan and re-establish the country under its own authority. China may also use force if considered necessary. And while the US maintains a good, albeit unofficial relationship, with Taiwan, the Western superpower has formal diplomatic relations with China, not Taiwan.
Meanwhile, Taiwan’s premier Su Tseng-chang told reporters that his island nation is warmly receptive to any foreign guests. Tseng-chang also stated that Taiwan would “make the most appropriate arrangements” for any prospective visitors.
US Executive and Legislative Arms of Government Seemingly Have Differing Views on Prospective Pelosi Visit to Taiwan
The unsavory political optics ahead of Pelosi’s likely visit to Taiwan has presented a seemingly insoluble problem for the White House. For instance, President Joe Biden previously stated that the US military does not view a Pelosi visit to Taiwan as “a good idea right now”. However, on Monday, Kirby asserted that the House Speaker “has the right to visit Taiwan”. In addition, Kirby also opined that Pelosi “makes her own decisions,” adding that the White House respects US Congress’ independence.