Taiwan's Lithuania Chip Plan Fuels Tensions With China - NVIDIA (NASDAQ:NVDA), Taiwan Semiconductor (NYSE:TSM)

China has vowed resolute opposition to any efforts by Taiwan to combine with external forces and pursue independence, Reuters reported citing a spokesperson of its foreign ministry.
The remarks came in response to a query about a plan announced this week by Taiwan to invest more than €10 million ($10 million) towards chip production in Lithuania.
Tension in the Taiwan Strait is due to authorities of Taiwan's ruling Democratic Progressive Party (DPP) colluding with external forces, the spokesman, Zhao Lijian, added at a regular briefing in the Chinese capital of Beijing.
Also Read: Taiwan Reasons Why It Is Futile For US And China To Harm TSMC
Lithuania opened a trade office in Taiwan, potentially escalating tensions with China that have been simmering since the European Union member state drew a stiff rebuke from Beijing, Bloomberg reports.
The opening comes a year after the government in Taipei opened an office in Lithuania's capital.
China responded by downgrading diplomatic relations with the EU Baltic state over the office's explicit use of the name Taiwan, a democratically ruled island that Beijing claims as its own.
The new Lithuanian trade office carries the name Taipei, which may avoid a harsher reaction from Beijing. China has repeatedly voiced opposition to countries engaging in official contact with the government in Taipei.
Taiwan Semiconductor Manufacturing Company Ltd TSM suspended the production of advanced silicon for Chinese startup Biren Technology to ensure compliance with U.S. regulations.
TSMC, which makes most of its chips in Taiwan, cut its annual investment budget by at least 10% for 2022 and struck a more cautious note than usual on upcoming demand.
Price Action: TSM shares traded higher by 2.90% at $64.58 in the premarket on the last check Tuesday.

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