TSMC is one of the largest chip makers globally, even beating Intel and Samsung by revenue numbers. And its location in Taiwan is a potential hotspot between the U.S. and China, especially as China (the PRC) considers Taiwan (the ROC) an integral part of its territory. With the regional superpower not discounting a military invasion of the island, the U.S. wants to ensure that TSMC’s chip-making capabilities won't fall into the PRC's hands. Thus, reports indicate that TSMC's EUV machines (made by ASML) have a remote kill switch fitted, for security.
Just last year, U.S. Congressman Seth Moulton suggested that the U.S. might bomb TSMC facilities in Taiwan if China invaded. However, the Taiwanese government said that it would defend the company against any form of aggression from anyone — including the United States. The Taiwan Security Bureau even said that destroying TSMC’s facilities is an unnecessary move, as producing high-end chips requires more than just the factories.
