They should absolutely be destroyed instead of being handed over to the Chinese.
The Taiwanese are painfully aware that without that chip manufacturing, the United States and European countries have less motivation to defend Taiwan.
China knows that without that chip manufacturing, whether owned by the Taiwanese or taken over by China, Chinese exports drop dramatically.
A cheap way to likely destroy circuit boards is to spray boards with common household bleach. A wetting mist would probably do, don't have to soak everything down. Unless boards are protected by a milspec mask, the chlorine (and salts) will corrode connections and pathways for the electrons.
Full disclosure…. I've not personally observed the effect of bleach. I have observed the effect of dilute chlorine gas during an industrial gas release. Milspec boards keep on ticking. Commercial boards fail in a few days.
And use plenty of radiation! (From Chernobyl!)