Taiwan signals potential nuclear power revival as AI chip manufacturing drives unprecedented energy demands, forcing a reconsideration of the nation’s plans to abandon atomic energy.
At a Glance
- Taiwan is openly considering new nuclear technology to meet surging electricity demands from AI chipmakers
- Premier Cho Jung-tai has indicated the government may reverse its anti-nuclear stance amid industrial pressure
- TSMC, Taiwan’s semiconductor giant, is projected to consume electricity equivalent to 25% of Taiwan’s population by 2030
- Electricity demand is expected to increase 12-13% by 2030, largely driven by the AI boom
- Taiwan’s legislature recently passed an amendment allowing nuclear plants to extend operations beyond the 40-year limit
Taiwan’s Energy Dilemma at Critical Juncture
Taiwan faces a pivotal energy crossroads as it prepares to shut down its last nuclear reactor amid skyrocketing power demands from its booming semiconductor industry. The island nation, home to chip manufacturing giant TSMC, is experiencing unprecedented electricity needs driven by artificial intelligence development.
Despite previous commitments to phase out nuclear power completely, Taiwan’s government is now signaling an openness to reconsidering this stance as industrial energy requirements threaten to outpace supply capabilities. This policy shift comes as Taiwan aims to maintain its competitive edge in global semiconductor manufacturing while simultaneously pursuing ambitious climate goals.
“Taiwan is “very open” to using new nuclear technology to meet surging demand from chipmakers devouring electricity in the artificial intelligence boom,” said Premier Cho Jung-tai, one of the strongest signs yet that the government is rethinking its opposition to reactors.
The pressure on Taiwan’s energy grid is intensifying rapidly. Electricity consumption is projected to increase by 12-13% by 2030, primarily due to the expansion of AI-focused semiconductor manufacturing. TSMC alone is expected to consume electricity equivalent to what a quarter of Taiwan’s population uses by the end of the decade. This industrial energy demand presents a direct challenge to Taiwan’s commitment to reach net-zero emissions by 2050, which relies heavily on increasing renewable energy production from the current 12% to 60-70% of total supply.
Political Shift on Nuclear Energy
Taiwan’s legislature recently passed a significant amendment allowing nuclear power plants to extend operations beyond the previously mandated 40-year limit. This legislative action, driven by opposition parties against the ruling Democratic Progressive Party’s anti-nuclear stance, reflects growing concerns about energy security. Though the government maintains there are no immediate plans for new nuclear projects, Premier Cho has indicated that Taiwan is “very open” to exploring new nuclear technologies and potentially restoring decommissioned reactors if safety concerns and public consensus can be addressed.
Taiwan’s nuclear program has a complex history dating back to the 1950s when it began with U.S. assistance. By 1990, nuclear plants generated more than a third of the island’s electricity. However, anti-nuclear sentiment grew following global disasters like Chernobyl and Fukushima, as well as local protests against nuclear waste disposal practices. The debate has intensified as Taiwan grapples with the dual challenges of ensuring industrial competitiveness while reducing carbon emissions. Premier Cho emphasized that public discussion on nuclear energy requires a strong consensus on safety protocols and waste management solutions.
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Environmental Concerns and Industry Responsibility
Environmental organizations including Greenpeace remain opposed to nuclear energy expansion in Taiwan, citing safety risks, waste management challenges, and potential environmental hazards. Critics argue that nuclear power diverts critical funding from renewable energy development and carries substantial risks for an island prone to earthquakes. These groups advocate for greater responsibility from the semiconductor industry in funding the transition to green energy sources, suggesting that chip manufacturers who benefit from Taiwan’s resources should contribute proportionally to sustainable energy development.
“Developing nuclear energy in Taiwan often means cutting the budget for boosting renewables, as opposed to other countries,” said Chia-wei Chao.
The immediate future presents significant challenges as energy experts predict tight supply conditions over the next three years. Despite Premier Cho’s assurances of sufficient power through 2030, Taiwan faces difficult decisions balancing its technological leadership aspirations against environmental commitments. The semiconductor industry, a critical component of Taiwan’s economy and global technology supply chains, is increasingly expected to take leadership in green energy initiatives while continuing to drive innovation in AI and advanced computing technologies that define Taiwan’s strategic position in global markets.
