There have been rumors for years that Taiwan has arrangements to quickly destroy critical TSMC technology/equipment in the event of a mainland invasion.
No doubt these whispers are spread deliberately to serve as a disincentive for attack, just like the ghost stories about automated retaliation ("Dead Hand," etc) during the Cold War / MAD era. In this case: "If you attempt to do X in order to acquire Y, a robotic, dispationate, automatic force will see to it that Y is destroyed before you can get to it. Therefore acquisition of Y is no longer a good incentive for X."
Sure, but China can destroy TSMC regardless (it's cost-prohibitive to harden something the size of a semiconductor fab against even conventional, dumped-out-the-back-of-a-aircraft bombing). The point of a scuttling system is not to prevent it from being destroyed, but to prevent the enemy from gaining any benefit from capturing it.