Taiwan is Running Out of Electricity

Taiwan is Running Out of Electricity

Taiwan, responsible for most of the world’s advanced computer chips, is facing a looming energy crunch. The island relies heavily on imported fossil fuels, is phasing out its last nuclear plant, and is slow in developing renewable energy sources.

Hsinchu Science Park, located southwest of Taipei, is home to Taiwan’s top tech companies, including Taiwan Semiconductor Manufacturing Company (TSMC), which produces 90% of the world’s advanced chips. Taiwan’s chip industry controls 68% of global production, generating immense success but also massive energy demands.

The industrial sector, dominated by companies like TSMC, uses over half of Taiwan’s electricity. TSMC alone consumes 9% of the island’s energy. Greenpeace estimates that by 2030, Taiwan's semiconductor industry will require twice the electricity New Zealand used in 2021.

With the rise of energy-intensive AI technologies, Taiwan’s clean energy targets are proving insufficient. Data centers, essential for AI, require vast amounts of green energy, which Taiwan currently lacks, potentially threatening the island's tech-driven future.