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Communist China intends to conquer Taiwan. If that happens, all Taiwanese companies will be under the de facto control of the Chinese Communist Party. Selling to Huawei most likely aids Communist China in acheiving it's long-term goal of conquering Taiwan.

So if the owners of a Taiwanese company prefer to control the company rather than cede de facto control to the Chinese Communist Party, this seems entirely reasonable.

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If I was the Taiwanese leadership, I'd make it very clear we'd prepositioned enough explosives that in a matter of hours all the top fabs and the like could be turned into junk, denying the PRC these crown jewels.

Just speaking for myself, I've got plans for the inevitable disruptions such a war would create. We'd be throwing away a lot less electronic gear for quite some time.

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