Comment by DennisP
4 days ago
In case of invasion, it's not that unlikely that the fabs in Taiwan get destroyed, or at least lose the ability to keep making and selling chips while the conflict is hot. In that case TSMC and Taiwan might prefer having a backup. As long as the US doesn't confiscate the Arizona fab, effectively siding with China, Taiwan would arguably have more leverage by still having something of immense strategic value to trade.
The US is not going to hold on to some working fab for some Taiwan-government-in-exile. As soon as you are out of power, even your allies generally take the time to plunder what they can.
Just like the US plundered any Ukrainian assets they could get their hands on, instead of supporting the Ukrainian government and freezing Russian assets instead?
The Ukrainian government is very much still extant
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In the case of invasion, the equipment within the TSMC factories will be affirmatively destroyed / sabotaged to the extent that it can't be used or studied.