Also, the better example is the SuperMicro accusations.

I dunno why the feds targeted a Taiwanese company. Maybe they didn't play ball and they got the stick.

Possible but the US is a gangster state. They've done shake-downs and disruption of French companies, Japanese companies, etc. It may be they were just trying to injure it to benefit US based competitors who would for example allow them to put their own spy-chips in server hardware bound for China or Japan or France or Germany. But as you say they may have been trying to get something and they wouldn't cooperate, perhaps the US tried to bully them into moving some production to India or the US or some place further afield from China's grasp and they refused and that would be enough. Heck the US has targeted and ruined US companies for not playing ball. There was a telecom called Qwest or something with a Q, they wouldn't cooperate with the NSA bulk gathering illegal wiretap program and the government pulled all contracts from them and ruined them. So simply refusing a request with these gangsters is enough for them to at the least fire a shot across your bow as a threat if not try to take you out entirely.

the KMT doesn't represent Taiwan so calling Taiwan fake-China is absurd.

I was doing a thing since, you know the territorial claims and anti-China liberals like to talk nonsense. Fact is they were to much of the world "real China" for years at the UN and elsewhere until getting unrecognized so they kind of are now the fake one, the pretender in every way. I think I see what you mean though.