China has claimed that Taiwan is attempting to surrender its prized semiconductor industry to the U.S. as a "souvenir" to secure political backing from Washington.

The accusation comes amid unconfirmed reports of potential investment talks between Taiwan Semiconductor Manufacturing Co (TSMC), the world’s leading contract chipmaker, and U.S.-based Intel.

Zhu Fenglian, spokesperson for China’s Taiwan Affairs Office, made the remarks during a routine Beijing news briefing. She alleged, without providing evidence, that Taiwan’s ruling Democratic Progressive Party (DPP) is exploiting the island’s semiconductor dominance to curry favor with foreign powers, particularly the U.S., in pursuit of independence.

"The DPP authorities are shamelessly using Taiwan’s semiconductor industry and powerful companies to pander to external forces, even offering them up as gifts," Zhu stated. She went further, suggesting that TSMC could soon transform into the "United States Semiconductor Manufacturing Co."

The comments follow speculation in U.S. media about TSMC, a key supplier to tech giants like Apple and Nvidia, negotiating a stake in Intel.

Neither TSMC nor Intel has officially confirmed these reports, and Taiwan’s government has said it has no knowledge of any overseas investment applications from TSMC. Meanwhile, U.S. President Donald Trump has publicly criticized Taiwan for undercutting American semiconductor jobs, advocating for increased domestic chip production.

China, which views Taiwan as a breakaway province despite Taipei’s rejection of such claims, has no jurisdiction over Taiwan’s foreign investment decisions. Nonetheless, Zhu accused Taiwan of "selling out" its businesses, framing the alleged moves as a betrayal of the island’s economic interests to appease the U.S.

The U.S., while not formally recognizing Taiwan’s government, remains its most critical international ally and arms provider, adding further tension to the U.S.-China-Taiwan dynamic.

The semiconductor industry, a cornerstone of Taiwan’s economy, has increasingly become a geopolitical flashpoint as global powers vie for control over cutting-edge technology supply chains.