Taiwan Semiconductor Manufacturing Company (TSMC) has signed a major agreement to purchase 1 gigawatt of power from the Hai Long offshore wind farm, as surging demand for AI chips intensifies the island's energy challenges.
Taiwan's Vice Minister of Economic Affairs recently stated that the government has secured enough oil and gas supplies to operate normally through August, possibly September, according to local reports. The administration of President Lai Ching-te is accelerating efforts to diversify energy sources, including considering the restart of shuttered nuclear plants and expanding renewable projects. Taiwan depends on imported fossil fuels for nearly 97% of its overall energy needs, according to the Global Taiwan Institute.
TSMC's energy consumption already accounts for nearly 10% of Taiwan's total electricity usage, a figure that could rise to one-quarter by 2030 as the company invests in energy-intensive advanced manufacturing to meet global demand for AI chips, according to S&P Global estimates.
The Hai Long deal adds to TSMC's existing renewable energy portfolio. In 2020, the chipmaker signed an agreement with Denmark's Ørsted for 920 megawatts from the Greater Changhua offshore wind farm, expected to be fully operational later in 2026. TSMC also partnered with German developer WPD in 2021 for over 1 gigawatt of onshore and offshore wind power.
The company has set targets for renewable energy to meet 60% of its global operations' needs by 2030 and 100% by 2040.