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TSMC Fuels AI Boom While Powering Taiwan's Green Future
7 May
Summary
- TSMC signed a 30-year power deal for 1 GW of offshore wind.
- Project aims to power over a million Taiwanese households.
- Taiwan faces energy crunch due to global supply disruptions.
Taiwan's leading chipmaker, TSMC, is securing a substantial portion of its energy needs through renewable sources while experiencing record profits driven by the AI boom. The company has entered into a 30-year corporate power purchase agreement covering 100 percent of the output from the Hai Long offshore wind project. This agreement, with Northland Power, spans over 1 gigawatt of power capacity.
The Hai Long project, located off Taiwan's western coast, is slated to begin supplying power to the national grid in 2025 and reach full operational status by 2027. Once completed, it will have the capacity to power more than one million Taiwanese households, contributing significantly to Taiwan's energy diversification.
TSMC's move is particularly timely as global energy markets face disruptions, impacting Taiwan's heavy reliance on imported fossil fuels. The company previously secured power purchase agreements with Ørsted and WPD for other offshore wind projects. TSMC aims for renewable energy to meet 60% of its global operations by 2030 and 100% by 2040.
Given that TSMC's chip manufacturing plants consumed nearly 10% of Taiwan's electricity in 2023, its commitment to renewables is vital for the island's energy future. Projections suggest TSMC's energy usage could rise to nearly one-quarter of Taiwan's total electricity consumption by 2030 due to increased demand for AI chips.
