Taiwan’s energy crunch hits the chip sector as TSMC scales AI demand. Vice Minister of Economic Affairs confirmed oil and gas stocks will keep plants running until August, maybe September. But the island’s reliance on imports—97 percent of its energy—pushes the government to diversify.

Taiwan has set a 15 GW offshore wind target by 2035 under a new government plan. TSMC aims for 60 percent renewable energy across its global sites by 2030 and full green power by 2040. The chipmaker already secured 920 MW from Ørsted’s Greater Changhua project, slated to finish in 2026, and a 1 GW deal with WPD.

TSMC’s consumption accounted for 10 percent of Taiwan’s electricity in 2023, a share projected to jump to a quarter by 2030 as AI chip production ramps up. S&P Global estimates link this surge to TSMC’s expansion of energy‑intensive fabs, making the company a key player in the island’s power strategy and a bellwether for supply chains.

With Taiwan’s grid already strained, the shift to offshore wind and nuclear revivals will test the country’s grid capacity. TSMC’s renewable targets set industry benchmarks, forcing other fabs to follow suit or risk falling behind. The move underscores how chip demand drives energy policy, turning Taiwan into a laboratory where technology and sustainability collide today.