Taiwan’s Defense Minister Wellington Koo reported Wednesday that the country’s armed forces are conducting a five-day “rapid response exercise” to ready its military to quickly react against an attack by China.
Koo said: “(We) must be able to gather crucial signs of alerts and prepare for the worst from the enemy.”
[Note: The Republic of China (ROC) — which controls Taiwan — transitioned from a one-party state under martial law to a multi-party democracy with democratically elected presidents beginning in 1996. Both the ROC and the PRC (People’s Republic of China), which governs mainland China, claim there is one China that includes Taiwan and that they have the right to govern it.]
On the same day the Taiwanese exercise started, Koo reported that China sent 54 Chinese warplanes including J-10 jets and drones to areas near Taiwan.
The Chinese government’s Taiwan Affairs Office released a statement which warned the Taiwanese government and President Lai Ching-te: “If the Lai administration ‘dares to provoke and play with fire, it will only bring about its own destruction.’”
While Taiwanese military forces continued to conduct its “rapid response exercise” on Tuesday, President Lai welcomed U.S. Governor Katie Hobbs (D-Arizona) to his presidential office.
Happy to welcome #Arizona‘s @GovernorHobbs back to #Taiwan. As we’ve seen from TSMC’s historic investment, the ties between Taiwan & Arizona are growing closer than ever. We look forward to expanding cooperation across high tech, trade, culture & more to drive shared success. pic.twitter.com/H6eBQ1b49C
— 賴清德Lai Ching-te (@ChingteLai) March 18, 2025
In his speech welcoming Hobbs, President Lai boasted that Taiwan Semiconductor Manufacturing Company (TSMC) would increase its investment in the U.S. by $100 billion and that it “plans to build more semiconductor fabrication and research and development facilities in greater Phoenix, transforming the area into a U.S. semiconductor hub.”
TSMC Chief Executive C.C. Wei met U.S. President Donald Trump at the White House this month, announcing the new $100 billion investment promise. Trump credited his tariff threats with compelling TSMC’s increased investment.
[Notably, Taiwan experts have described the U.S. investment as an insurance policy that works to tie the interests of the two countries together in changing geopolitical circumstances. Some have called the investment a quid pro quo for American military support in the event of a Chinese invasion. The idea is prevalent enough to have a nickname, the Silicon Shield.]
We were honored to visit TSMC’s headquarters and meet with Chairman and CEO C.C. Wei, along with other key leaders. We’re incredibly grateful for TSMC’s unwavering collaboration and visionary leadership. Arizona stands firmly dedicated to supporting and nurturing this historic… pic.twitter.com/rbupNkUTih
— Governor Katie Hobbs (@GovernorHobbs) March 19, 2025
In April 2024, the U.S. Department of Commerce awarded TSMC Arizona $6.6 billion in direct funding under the CHIPS and Science Act, which President Biden signed in August 2022. TSMC has committed to build a third semiconductor fabrication (fab) facility in Phoenix, making it — if fulfilled — the largest foreign direct investment (FDI) in Arizona history.
Asked about TSMC’s expanding investment in the U.S., Chen Binhua, spokesperson for China’s Taiwan Affairs Office of the State Council, said the U.S. — where it costs more to build the fabs — has been “systematically hollowing out TSMC and draining Taiwan dry, while the DPP authorities simply comply without resistance.” (President Lai is a member of the DPP, the Democratic Progressive Party.)
Chen added: “Is forced ‘decoupling and supply chain disruption’ truly beneficial to Taiwan, or merely serving U.S. interests?”