Because transporting any large company from location A to location B involves a lot more than just shipping the machinery. TSMC is the tip of the iceberg, the thing you can see jutting out of the waters. We don't see the invisible - but implicit - support structure that makes the company possible.
Freakonomics podcast had a couple of episodes on Taiwan some time ago, and one of the points brought forward was that TSMC is a spearhead. In Taiwan, there is more semiconductor industry, and an established education structure able to produce the ongoing stream of skilled workers at every level. These feed into each other, and TSMC is at the apex of the pyramid. To produce an environment where you could transport TSMC to and have it continue to thrive, you'd likely need to first maintain a strategic focus for something like 15 years to build the necessary support structure.
I suspect that China is looking at this, but looks at it from another angle. If they invade Taiwan, they will end up disturbing the support structure that makes TSMC, well, TSMC. The edge of Taiwan's semiconductor industry is not that they have TSMC. Their edge is the entire environment that makes TSMC possible in the first place.
Or to be really blunt about it: once the CCP believes they can do without Taiwan's semiconductor industry, they'll send in the troops.
> once the CCP believes they can do without Taiwan's semiconductor industry, they'll send in the troops
That's still a simplistic point. Will they not consider the practicality ot invasion?, like Taiwan beating them on its own, USA getting involved as promised, etc?
If not, then we'll likely have a war between major powers or they'll get to declare victory as with vietnam.
Of course they do! And it would be totally fine to make an offer. But to purchase an entire strategic sector from a country would warrant some sort of government intervention, no? TSMC getting fully bought out and moved out of Taiwan, as comments suggest, would not be possible without the government's approval, and why would a government approve that if it had its own interest at heart?
It's why I was giving the example of EU or China or whatever offering up to buy the entire US military industrial complex. It would be impossible, and not only due to lack of funds.
So is yours. OP used the word "dictate". You transformed it into "offer a better location". And e.g. USA is not a better location for TSMC for a multitude of reasons, so that "offer" wouldn't fly unless it were coercive.
TLDR is no, strategic companies with massive state industrial funding have little autonomy. Even TW (and US) semi workers don't have autonomy to work in PRC semi industry for greater pay. Why is it unseemly to offer a person better pay and locations - TW workers sure liked getting 3-5x salary while being an hour flight from home, until TW gov said no. Ditto with US but on pay. Because it undermines strategic position of incumbant / host.
